RBA drops rates by 100bp!

[willair]

but I'm guessing that when you are cancelled you are cancelled!

I have a drink with a legal-person who works for one of the big 4 banks every now and again when they have the $6.95 counter lunch with a free pot of beer at the local front bar hotel ,it's her job to call in the loans and "loc'c" and from what she tells me there is a massive amount of loans about to be called in over the next 12 weeks, but to give a person just 14 days would make most become involuntarity unemployed overnight,best of luck.
willair..

 

[Tulip]

Hi Willair,

Did you get any feel for the profile of the loans they were looking to call in at all?

For example, looking to reduce LVRs, or where income may be a problem or more likely those who have had credit problem in the last 12 months etc?

Thanks

Tulip

 

[willair]

Hi Willair,

Did you get any feel for the profile of the loans they were looking to call in at all?

For example, looking to reduce LVRs, or where income may be a problem or more likely those who have had credit problem in the last 12 months etc?

Thanks

Tulip

Tulip from what she tells me the ones they move on are the ones with
"BIG"credit problems,or properties that have lost value and this is in Brisbane she has been doing this for a long time,she only makes the call some one higher up in the bank makes the list,as she tells me it very hard to tell someone your dream is finished,maybe that's why she has ten pots of beer then goes back to work,but someones got to do it..

 

[natecv8]

I've had LOCs established with both ANZ and CBA at 80% over the last few weeks with no issues, so it can't be too strict. If they want to turn around and call them in so be it, but that would be a very inefficient way of restricting credit!

 

[Aaron Sice]

s-h-i-t sparky! you just seem to keep rolling snake-eyes lately...so sorry to hear.

anyone know what CBA are passing on?

 

[weg]

NAB were giving me 3 monthly loan pre approvals from mid last year based on old valuations yet the last one done in Jan. was full approval with new valuations.

My banker told me the new criteria now is that valuations are only valid for 3 mths.

The funny thing was they made an error on my income the last time (they calculated weekly as monthly) and still approved me on -$300 per month!

Sounds to me like they have the funds and are more than happy to lend but are just being cautious with residential lending.

 

[Tulip]

Thanks Willair,

Not a job I could do, hope the other benefits of her job are worthwhile.

I heard the CEO or similar of CBA interviewed a couple of months ago and he was asked how they determine what rates to pass on. He said there is usually one bank that leads the charge, they look at that number, check their costs, think about it and the number pops out. Guess they must be at the thinking stage still.

Sparky, you are so close to getting everything sorted out, just keep plugging away there.

Cheers

Tulip

 

[sparky23]

Tulip from what she tells me the ones they move on are the ones with
"BIG"credit problems,or properties that have lost value and this is in Brisbane she has been doing this for a long time,she only makes the call some one higher up in the bank makes the list,as she tells me it very hard to tell someone your dream is finished,maybe that's why she has ten pots of beer then goes back to work,but someones got to do it..

Well shame no-one had the guts to phone and talk to me about it, the letter looks like a standard letter with my details inserted at the top. Guess you don't need to top up on beers when you are typing up letters the cowards way!

 

[Shadow]

Watch our kleptomanic banking cartel pinch another .25%

NAB is passing it all on too. So that's NAB, Westpac and ANZ. Just CBA to go...

 

[austini]

"NAB mortgage rates will drop to 5.74% on February 13, but the bank has said it may not be able to match future official interest rate cuts."

As we are with NAB this is great news - never thought in my lifetime I would see our interest rate (including discount) with a 4 in front of it.

Pity it's too early for a beer to celebrate.

Cheers - Gordon

 

[steveadl]

I doubt CBA will drop less than the full 1% since the other 3 passed it on in full.

 

[willair]

Well shame no-one had the guts to phone and talk to me about it, the letter looks like a standard letter with my details inserted at the top. Guess you don't need to top up on beers when you are typing up letters the cowards way!

So who do you blame for your fin problems,the Rudd Government?the real estate agent that sold you your properties,the M-B,the legal person that did the settlement,the builders,who do you blame,the banks are just like every other thing in life without their money in the first place, and the shareholder backing the entire system,who btw have lost over 50%
of the shareholder value over the past 14 months, everyone down the lines has had a big kick in the guts,even me and it will take me several years to get my money back and that's only fron one banks i still hold several,if i had it my way all the people that lent the money in the first place would now be out of a job,and from what i'm told most have lost their jobs that gave out those loans,have a good day i intend too..willair..

 

[austini]

"COMMONWEALTH Bank said it will cut its variable home loan rate by 1 per cent, making it the last of the big four banks to pass on the Reserve Bank of Australia's interest rate cut in full.

The cut lowers Commonwealth Bank's variable mortage rate to 5.74 per cent from Februrary 13."

Cheers

 

[Aaron Sice]

that makes me on 5.04%.

awesome! - now, where to buy, where to buy, chasing something new-ish with a 6-7% yield....CF+ here we come.

 

[Ms Jade]

"NAB mortgage rates will drop to 5.74% on February 13, but the bank has said it may not be able to match future official interest rate cuts."...

Thanks for the heads up on what will happen with future cuts, NAB. I think I will cross you off the list of possible re-financiers.

And Gordon, it's never too early for a beer, mate.

 

[Ms Jade]

Heres one for you, amidst my celebration today a letter arrived from the NAB - one of those lovely 'We have decided to cancel your loc account so we would like our $175,000 back thanks very much and by the way you have 8 days left of the 14 days from the date of this letter to sort something out!'

Brilliant cheers and thanks for that just as things were looking up I can hardly believe that they choose to wait until now the very time when we are back on track!

Well I have put something together to show how we look going forward but I'm guessing that when you are cancelled you are cancelled!

Bloody hell sparky, that is very scary. I feel terrible for you. It's worth taking the fight to them though; what do you have to lose? I wonder if having a personal relationship with a Bank Manager (a.k.a. "the good ol' days") puts one in a better position with this kind of stuff now or not?
I have a bad feeling there will be a lot more stories like yours over the next 12 mths.

 

[nonrecourse]

Heres one for you, amidst my celebration today a letter arrived from the NAB - one of those lovely 'We have decided to cancel your loc account so we would like our $175,000 back thanks very much and by the way you have 8 days left of the 14 days from the date of this letter to sort something out!'

Brilliant cheers and thanks for that just as things were looking up I can hardly believe that they choose to wait until now the very time when we are back on track!

Well I have put something together to show how we look going forward but I'm guessing that when you are cancelled you are cancelled!

I'm really sorry for you sparky. For over a year I have been on about the soft financial depression and the gradual removal of Loc's and corresponding contraction of LVR's.

You are not alone 80% of posters on this site are going to experience the same scenario. If you act now you might be one of the lucky one's. Look at selling something and get your LVR's below 30%.

The worse thing you can do is to stand still looking at the freight train that is bearing down on you.

 

[Token Funder]

As I've been trying to say for some time, as far as credit is concerned Its Different Here Now.

If your plans are predicated on the credit market of the five years prior to July 07 existing for the next five years, get yourself a Plan B. Not everyone will feel the effects, but investors dependent on easy access to equity, LVRs north of 90%, minimal cash in the deal, no genuine savings, Lo Doc/No Doc, and various taxation related add backs, you need to put pen to paper and have a back-up plan.

 

[sparky23]

So who do you blame for your fin problems,the Rudd Government?the real estate agent that sold you your properties,the M-B,the legal person that did the settlement,the builders,who do you blame,the banks are just like every other thing in life without their money in the first place, and the shareholder backing the entire system,who btw have lost over 50%
of the shareholder value over the past 14 months, everyone down the lines has had a big kick in the guts,even me and it will take me several years to get my money back and that's only fron one banks i still hold several,if i had it my way all the people that lent the money in the first place would now be out of a job,and from what i'm told most have lost their jobs that gave out those loans,have a good day i intend too..willair..

I don't blame anyone except me!

I got into this aggressively and knew by doing so there were risks. Over a year ago when things began to change I tried to work things out but the combo of losing my job, rising rates and nothing selling all came together at the same time and made life difficult.

Today I put together a spread sheet for NAB showing our position moving forward having sold properties, new job with good salary,additional rents for 2 properties not producing last year (under construction etc) increased rents and falling rates. There was an option to move to P/I which I hope we can pick up if we can't get a change of mind on this one. If all else fails I will complain to the ombudsman which got results last year when 5 days before they were due to release titles for a refinance to another bank they cancelled and wouldn't release.

Worse case scenario is they make us sell a $450,000 house and repay their $340,000 which I didn't want to do with rent at $390 but no doubt they will damage the credit rating I have managed to protect all year.

 

[sparky23]

Does anyone have news yet on Bankwest, ING or St George?