And Westpac follow NAB

Westpac have increased beyond NABs lead. Higher rate increase for IO (0.28%) and investors v's 0.03% for owner occupied P&I loans.

 

Lemmings

 

Thieves and egged on by the people who are meant to be protecting us from them.

 

Damn it! I was betting that the CBA would be the first to follow.

 

Probably getting ready for RBA cut.

 

Wow - I'm glad I fixed yesterday!

 

2 out of 4, im sure the other two will be coming in the next few hours / by monday with the same

 

Oligopolies seeing an opportunity to increase their profits. Hopefully they don't raise investor loans every time the US Fed raises interest rates!!!

 

It won't stop here, the 10 years US bond rate is what usually borrowing cost based on has double its rate since 12 months and it still going up

Banks now is catch up mode, they get a bit more aggressive as the 10 years bond yield ramp up.

Great news for low leverage people, knocked out naked swimmer and we can buy positive gear properties again

 

Don't worry about the US Feb keep an eye on this chart, most mortgaged backed borrowing cost based on this price it gone up about 1% since last year.

For people in the know they already know rate is on its way up before the bank even act.

10 Year Treasury Rate

 

Dicks!

Gotta try to pass some of this through to the tenants...

 

If you are sensible investors this should be the caused for Joy just like a stock market crash.
Less competition, cheaper asset, good cash flow

Soon some people will learn the practical lesson in high leverage product

It magnified your gain on the way up, it also magnified your loss on the way down
and if you don't manage it well, it can wiped you out.

Some people already learn that in business during the 80s corporate raiders
Maybe next decade will be a lesson for ordinary people with a highly leveraged portfolio + poor cash flow.

 

Not true, in the past year UST10YR rate lowest was only 1.5+ so to double current rates will have to hit 3% or more. However you could say they have almost doubled.

More importantly, when our local banks did a rate rise in Jan this year, the rate was running around 2.4% it has only fluctuated within 2.4 to 2.6 in the past couple months and currently hovering at 2.5%+ In fact it dropped a bit after the rate rise was confirmed. so really since jan so called "funding cost" should only have gone up 10-20 basis points for the banks.

I did read somewhere that most of our big four's funds does come from savings deposits, so local RBA rates has influence too. But apparently a sizeable portion does come from overseas funding which will follow the UST 10yr rate.

Chinese PBOC has reacted by increasing their rates as well.

 

Fractional reserve requirements going up?

 

Do you they will increase savings rates as well?? Not likely. Oh to be a bank, maybe time to buy bank shares unless property turns to muck and defaults increase. They will certainly be making more margin now.

 

I fixed all my investment loans at 3.78 for 5 years with Westpac. Looks like it was a good decision to make.

 

That's a pretty sharp rate for 5 years with one of the big 4. Nice work!

 

3.78 fixed is amazing. I just bribed my way out of a 5.03% fixed rate to get a low 4 one. No fuss even if it goes back up to 5.

Good time to slice some of that offset and buy up some bank shares?...

 

Is STG and BOM also affected?