Big 4 vs Other Lenders

I'm in a situation where the Big 4 bank rate for investment lending is similar to a global bank offering and I'm considering the likelihood of interest rate movements out of cycle.

Do you think its more likely the Big 4 banks will raise their rates more or less vs global/non-Big institutions. Both are offering similar loan sizes in this situation and the products are more or less equivalent.

 

Big 4 anyday

 

MC1 - I'll assume that's a vote to stick to a Big 4 Bank rather than go with a global/non-Big 4 bank/institution.

 

I could be totally wrong but my feeling is that the Big4 are trying to attract new customers as hard as they can and thus are giving attractive rates.
However with the slow down of investment lending (which is their lucrative business) they will need to somehow restore their margins. I may be cynical but I am sure they will jack up their prices down the line.

The global players have indeed the same costs of funding issues but not so much the margin issues (as they are global and may not be stung as hard by the RC outcomes).

Again, not an expert but when I see how often the Big4 have increased my rates (when it has reduced for new customers) compared to my HSBC loans, I am now very wary.
But again, I could be an isolated case .....

Cheers,

 

Appears nobody has learned anything from the GFC. Short memories. Cost of Funds are always an excuse for rate rises.

Right now, the APRA environment has had one pleasant side effect...some volume has started being spread amongst other lenders.... that ( and the Royal Commission) is probably all thats keeping the Big 4 from hiking rates, right now. Once the RC is done, watch this space... they care far more about their share price than your interest rate.

 

And...on cue

Small banks could 'pave the way' for big four rate hikes: Moody's

 

Really useful insights and well appreciated. This is why I've been trying to work out which would be the preferable bank to deal with. As it's really trying to guess if the Big 4 are on the verge of raising rates outside of the RBA and over the past 3 years for investment loans they have shown an appetite to do so. Definitely makes me have a second guess sticking with the Big4 now.