Outside bank cartel, rate rise on top of RBA's ?

[on the move]

Of course the major banks all have to increase interest rate more than the RBA's 0.25%, otherwise the BS extra funding cost claim doesn't hold water. Just wondering what about smaller lenders (if any exists) such as credit unions, do they increase more than the RBA ?

 

[Ausprop]

through out the GFC thay have been hiking above the RBA increases

 

[BV]

Its funny how even small lenders who are not sourcing their funds in the intl markets have also increased rates above the RBA's 0.25% increase.

We're being taken for a ride and the government is asleep at the wheel....zzzzzzzzzzz

 

[Peter_Tersteeg]

This time round the second tier lenders have generally put their rates up by about 0.35%, similar to the majors. In general terms my understanding is that the cost of funds for the smaller lenders is higher than the majors. Many do rely more heavily on securetized funding sources.

 

[wally]

My ppor loan credit union upped their rates by the RBA's 0.25%, for an effective rate of 6.99%.

 

[jonmardell]

Wally in saying that one of the majors is only above that rate at the moment for 250K+ loan with all the bells and whistles. You have to weigh up all the costs associated with a loan to see if you are getting a good deal. There are some highly touted "smaller" lenders that offer some good rates but only a little under the majors but they have exit fees of $6,000 in the first year and then reducing from there. The key is to work out the true cost over a 3 - 5 year period taking into account all fees and charges cause in my opinion "comparison rates" are useless as it is done over a 25 year period and i dont know anyone who is going to keep the same loan for 25 years!