St George drops rate by 30bp's
- Thread starter Ross
- Start date
Not really a trump per se...
As the article alluded to - current variables less reductions
CBA 9.58 less .25 = 9.33
ANZ 9.62 less .25 = 9.37
NAB 9.61 less .25 = 9.36
WBC 9.61 less .25 = 9.36
SGB 9.67 less .30 = 9.37
(leaving off the propacks and discounts)
So really they're coming back into line a bit instead of making that extra .05%
Wait for their profit report... think its exceeding expectations
As the article alluded to - current variables less reductions
CBA 9.58 less .25 = 9.33
ANZ 9.62 less .25 = 9.37
NAB 9.61 less .25 = 9.36
WBC 9.61 less .25 = 9.36
SGB 9.67 less .30 = 9.37
(leaving off the propacks and discounts)
So really they're coming back into line a bit instead of making that extra .05%
Wait for their profit report... think its exceeding expectations
I agree, they still have the highest rate along with ANZ
StuartW
Their thinking is that most people wouldn't bother moving to another lender for to save $100.
However, there are other lenders with a considerably lower variable rate and as you said it's also the principle issue so they could lose some customers
and probably the good ones (with low LVR and therefore lower risk).
I personally think it's stupid playing games with their customers because not only they could make them walk but often they don't come back.
For example, I had a bad experience with ANZ once and I won't even go past their door...
A couple of months back I was actually surprised when I saw that STG increased their rates higher than the other big lenders and I am now even more surprised that they are not dropping them immediately in line with the others.
Something is telling me that they have something bad hidden inside their closet.
I have to say that these issues worry me because we also have quite a few loans with them so we are now seriously considering of taking our business elsewhere.
Cheers
Andrew_A,
there was an article on RHGL in the Fin Review on 2 September
Debt-ridden RHG wipes out dividend
Tuesday, 02 September 2008 | The Australian Financial Review | Geoff Winestock
Given what has been going on with director/former director dealings and shareholdings with the company I would be surprised to see a 0.25% cut.
Ajax
there was an article on RHGL in the Fin Review on 2 September
Debt-ridden RHG wipes out dividend
Tuesday, 02 September 2008 | The Australian Financial Review | Geoff Winestock
Given what has been going on with director/former director dealings and shareholdings with the company I would be surprised to see a 0.25% cut.
Ajax
There is nothing on MyRates web page about the RBA interest rate cut.
I have just sent them an email asking when it will be passed on to their customers.
Will let you know if I get a reply...
I have just sent them an email asking when it will be passed on to their customers.
Will let you know if I get a reply...
CBA pass along the reductions 8/9/08
also note they're dropping their fixed rates as well so you'll be circa 8.69% for a 3 year fixed less their .15%
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St George News Release yesterday....
St.George reduces standard variable interest rates by 0.30% pa
"St.George Bank today announced that it was lowering its standard variable home loan interest rates by 0.30% pa to 9.37% pa, effective 29 September 2008. This is an additional 0.05% pa to the 0.25% pa reduction announced by the Reserve Bank of Australia (RBA) on 2 September 2008. The new reduced rate will be applicable for new and existing customers. Les Matheson, Group Executive Retail Bank, said; “I am extremely pleased to be able to provide our customers with a reduction in their home loan interest rate, above and beyond the RBA cut announced today.” “We are very mindful of the impact of rate rises on our customers and have upheld our commitment that if funding costs were to reduce, we would then look to adjust our rates.” “In order to provide customers with a larger reduction in their interest rate, we have decided to wait a few weeks for the RBA decision to fully flow through to our overall funding costs. This allows us to offer the additional bonus of 0.05% pa above the RBA decision, which we know will be appreciated by our customers,” Les said. This 0.30% pa rate reduction equates to a saving of approximately $55 per month in repayments on an average size loan of $250,000 over a 30 year loan term. In addition, on Monday St.George announced it was cutting its 1 – 5 year fixed interest rates by up to 0.76% pa, or 1.06% pa including special Advantage Package discounts, effective Wednesday 3 September. These changes include the introduction of a 2 Year Fixed Rate of 8.29% pa for eligible Advantage Package customers, the lowest amongst major banks. The changes give customers the opportunity to lock into some of the most competitive rates currently in the market. St.George has also decreased rates on deposit products, with most savings and investment products decreasing by 0.25% pa."
What a joke this is! Don't you love the Group Execs softening it all up by making stupid excuses why they can't pass it on immediately? Few weeks sounds a lot more media friendly than the 1 month delay. What an insult to our intelligence. Why don't they tell us the truth of what goes on in the meetings with the money market dealers. Fact is, the dragon is up shi* creek. Struggling to keep up the big fat margins cos their costs are blowing out of proportion. Not sure if the Westpac knight will solve all their funding problems either.
Read the other day that the banks will make $3-4M every day they delay passing on the benefit. Thats $100M of pure profit in their coffers for the "few weeks" they delay. Ask poor granny whether the interest rates on her TDs have dropped overnight. Funny how funding problems don't exist when the bank is doing the borrowing from investors. And they want to remove the four pillars policy. Please fat cats, get off your air-conditioned offices, comfy meetings and get a real job!!
Rant complete...
St.George reduces standard variable interest rates by 0.30% pa
"St.George Bank today announced that it was lowering its standard variable home loan interest rates by 0.30% pa to 9.37% pa, effective 29 September 2008. This is an additional 0.05% pa to the 0.25% pa reduction announced by the Reserve Bank of Australia (RBA) on 2 September 2008. The new reduced rate will be applicable for new and existing customers. Les Matheson, Group Executive Retail Bank, said; “I am extremely pleased to be able to provide our customers with a reduction in their home loan interest rate, above and beyond the RBA cut announced today.” “We are very mindful of the impact of rate rises on our customers and have upheld our commitment that if funding costs were to reduce, we would then look to adjust our rates.” “In order to provide customers with a larger reduction in their interest rate, we have decided to wait a few weeks for the RBA decision to fully flow through to our overall funding costs. This allows us to offer the additional bonus of 0.05% pa above the RBA decision, which we know will be appreciated by our customers,” Les said. This 0.30% pa rate reduction equates to a saving of approximately $55 per month in repayments on an average size loan of $250,000 over a 30 year loan term. In addition, on Monday St.George announced it was cutting its 1 – 5 year fixed interest rates by up to 0.76% pa, or 1.06% pa including special Advantage Package discounts, effective Wednesday 3 September. These changes include the introduction of a 2 Year Fixed Rate of 8.29% pa for eligible Advantage Package customers, the lowest amongst major banks. The changes give customers the opportunity to lock into some of the most competitive rates currently in the market. St.George has also decreased rates on deposit products, with most savings and investment products decreasing by 0.25% pa."
What a joke this is! Don't you love the Group Execs softening it all up by making stupid excuses why they can't pass it on immediately? Few weeks sounds a lot more media friendly than the 1 month delay. What an insult to our intelligence. Why don't they tell us the truth of what goes on in the meetings with the money market dealers. Fact is, the dragon is up shi* creek. Struggling to keep up the big fat margins cos their costs are blowing out of proportion. Not sure if the Westpac knight will solve all their funding problems either.
Read the other day that the banks will make $3-4M every day they delay passing on the benefit. Thats $100M of pure profit in their coffers for the "few weeks" they delay. Ask poor granny whether the interest rates on her TDs have dropped overnight. Funny how funding problems don't exist when the bank is doing the borrowing from investors. And they want to remove the four pillars policy. Please fat cats, get off your air-conditioned offices, comfy meetings and get a real job!!
Rant complete...
I agree that its disgusting! I have a reasonable amount of lending with SGB. I submitted a complaint yesterday via website and said that I am taking my business elsewhere. I had two radio interviews yesterday and made a point of highlighting SGB's move. I will continue to do same in furture interviewws. SGB customers should send a message!!!
To play a bit contrary - while I do agree - in part.
Say SGB came out and said we'll match the .25% and the same timeframe happened you'd still be kicking about the timeframe. Probably a bit of a whinge about the rate but nothing enough to make you refinance - if you havent refinanced yet you wont necessarily do it now.
But then a week later SGB said - we've decided to knock off .30 instead to bring us into line then you'd be smiling a bit more that you're not .05 higher than the rest - which you have been for the last "X" months/years...
Say SGB came out and said we'll match the .25% and the same timeframe happened you'd still be kicking about the timeframe. Probably a bit of a whinge about the rate but nothing enough to make you refinance - if you havent refinanced yet you wont necessarily do it now.
But then a week later SGB said - we've decided to knock off .30 instead to bring us into line then you'd be smiling a bit more that you're not .05 higher than the rest - which you have been for the last "X" months/years...
Maybe
But here we are.... so maybe for a snippet of time, they are.
Pretty sure it didnt take them 3 weeks to increase on the back of rba. Yeah... looking back - update #165 - took them a few days.
And their deposit rates have already sucked for ages - thats nothing new.
But that being said whos to say wherever you go will pass along the full "next" decrease?
With lenders and what they will and wont do, theres no promises and while I see your point re the time I'm probably a bit more reluctant to jump ship just yet.
But here we are.... so maybe for a snippet of time, they are.
Pretty sure it didnt take them 3 weeks to increase on the back of rba. Yeah... looking back - update #165 - took them a few days.
And their deposit rates have already sucked for ages - thats nothing new.
But that being said whos to say wherever you go will pass along the full "next" decrease?
With lenders and what they will and wont do, theres no promises and while I see your point re the time I'm probably a bit more reluctant to jump ship just yet.
Its all spin doctoring. I'd bet the majority of people dont even have a clue and dont care about anyone but themselves
Banks dont pass on rates timely which is a nice money spinner for the bank
Brokers put up a rant for people to take a stand and refinance to show their objections to stir up business which is nice money spinner for the broker to refinance them. Zzzzzz
Customers touch their toes for a few extra weeks if you're with St. George.
for many after paying the legal costs and whatever else its not worth it to refinance out for a 3 week period.
Say I owe $1,000,000.
Difference in rate is .3% = 3000 a year
365 days = 8.22 a day extra
x 30 days = $246 loss until they come through.
So if you're refinancing over $246 then I reckon you're pretty dizzy from listening to all the spin. And thats on a million bucks.
Banks dont pass on rates timely which is a nice money spinner for the bank
Brokers put up a rant for people to take a stand and refinance to show their objections to stir up business which is nice money spinner for the broker to refinance them. Zzzzzz
Customers touch their toes for a few extra weeks if you're with St. George.
for many after paying the legal costs and whatever else its not worth it to refinance out for a 3 week period.
Say I owe $1,000,000.
Difference in rate is .3% = 3000 a year
365 days = 8.22 a day extra
x 30 days = $246 loss until they come through.
So if you're refinancing over $246 then I reckon you're pretty dizzy from listening to all the spin. And thats on a million bucks.
Saint, I would agree with you and I wouldn’t ever suggest a client of mine to refinance because of this treatment. However, I want to refinance out of principal only - not because I think I will be better off. In fact, it will cost me time and money!
The problem is that its costly and time consuming to refinance - therefore people don't do it. The side effect is the banks and get away with treating clients poorly - more so than any other industry. However, if we, as borrowers, don't accept this treatment and vote with our feet, the banks will learn and change their behaviour.
I know this is a fanciful idea. I don't really expect it to change – people often aren’t financially better off to refinance in these circumstances so, as a professional, how can I suggest that they do – I can’t. However, wouldn’t it be a wonderful this if we did. We would teach the banks a lesson and we might get better service and treatment. I know... I know... it’s a mere dream. It just annoys me how the banks treat customers the way they do solely because they know they can get away with it.
The problem is that its costly and time consuming to refinance - therefore people don't do it. The side effect is the banks and get away with treating clients poorly - more so than any other industry. However, if we, as borrowers, don't accept this treatment and vote with our feet, the banks will learn and change their behaviour.
I know this is a fanciful idea. I don't really expect it to change – people often aren’t financially better off to refinance in these circumstances so, as a professional, how can I suggest that they do – I can’t. However, wouldn’t it be a wonderful this if we did. We would teach the banks a lesson and we might get better service and treatment. I know... I know... it’s a mere dream. It just annoys me how the banks treat customers the way they do solely because they know they can get away with it.
Id figure a guy like you does well for yourself - and probably a chunk of your debts are investments. hence costs would be deductable or offset against your tax and so on. Maybe costs in the time it takes you to process the loans but then, you take your loans to another lender and they pay you brokerage to bring them through the door so your 'loss' is recouped pretty quickly
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