ANZ raises fixed rates

Discussion in 'Loans & Mortgage Brokers' started by Dean Collins, 23rd Jan, 2018.

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  1. Dean Collins

    Dean Collins Well-Known Member

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    ANZ has increased on its one to five year fixed rates and for fixed owner occupier and investment loans of up to 34 basis points.
    - ANZ raises fixed rates in early 2018 move


    Yep.....basically aapra has greenlighted banks to scare the **** out of the market and do out of synch raises to increase bank profits.....

    Time to sell property and buy bank shares [​IMG]
     
    Dean Collins, 23rd Jan, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    My understanding of the fixed rate market is that rates are set more by the expectations of large scale investors such as super funds and what they believe they can get in a 5 year bond rate.

    Bank buys a billion or 3 bond at rate x, slices it up into smaller mortgage backed loans and marks it up as much as competition will allow.

    I do agree though that some aspects of APRA tightening have meant free marketing for lenders such as Latrobe, Pepper and Liberty - perhaps they should be paying APRA a levy :)

    ta
    rolf
     
    Rolf Latham, 23rd Jan, 2018
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  3. Toby

    Toby Well-Known Member

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    As Rolf said, this is less the bank increasing profits and more interest rate expectations.

    The mortgage business in the bank is a price taker in the swap market (this is what they use to fix your mortgage) - as rates on interest rate swaps go up, so does the fixed rate on offer by the bank as they will definitely pass this on.
     
    Toby, 23rd Jan, 2018
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  4. Redom

    Redom Mortgage Broker Business Plus Member

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    Strange in the sense that most of the market has moved the other way in recent weeks.

    Probably worth putting in fixed rate lock in requests for those that apps in progress with some of the major promos (westpac/etc) at the moment.

    Its likely that others will follow soon enough, otherwise they've priced themselves well above market (others move down, you move up, and a pretty big 50bp gap begins to open with your major competitors).
     
    Redom, 23rd Jan, 2018
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  5. Dean Collins

    Dean Collins Well-Known Member

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    Agree...there has been a lot of pushing out of long term rates after finding that bonds were easily filled....(at least they are here in the USA).

    Like I said....lots of indications going to be a bumper few years for bank profits over the next 2-3 years.
     
    Dean Collins, 24th Jan, 2018
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