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CBA increases rate

Discussion in 'Property Finance' started by jins13, 22nd Oct, 2015.

  1. jins13

    jins13 Well-Known Member

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  2. 2FAST4U

    2FAST4U Well-Known Member

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    The oligopoly at play.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    15 basis points increase. Not as bad as Westpac and they're starting from a lower base. Still pisses me off, they've given us every indication recently that they're well on track to meet APRAs cash buffer requirements.

    I was kind of hoping that none of the others would follow Westpac, but this kind of opens the flood gates.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    can it get any worse?
     
  5. jaybean

    jaybean Well-Known Member

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    I'm confused. Why are there even floodgates to open?

    I thought this was how it played out:

    1) APRA tightened the rules again, I recall this was around May
    2) Almost all the banks increased rates except Westpac, because of a system issue

    ...

    3) Months later (now), Westpac increases rates, catching up with the rest


    Aren't Westpac simply catching up with an increase that all the other banks implemented ages ago? It's not like they're doing a second increase like CBA? I was surprised that everyone was angry at Westpac, because I thought they were just doing what everyone else had already done. Maybe I'm missing something.
     
  6. tobe

    tobe Well-Known Member

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  7. Waterboy

    Waterboy Well-Known Member

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    F**k me!
     
  8. tobe

    tobe Well-Known Member

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    interesting they didn't add it to their 3 year discounted product, OO or investment....It does get loaded after the initially 3 years though.
     
    joel likes this.
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    Most people would change by then i suspect?
     
  10. standtall

    standtall Well-Known Member

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    It probably only affects distressed mortgagees and if someone is going to get distressed at just 15c increase, they should have stayed in rentals.

    Besides, most investors have deep discounts anyways.
     
    ej89 likes this.
  11. Wall Street

    Wall Street Well-Known Member

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    I thought their .27 increase earlier in the year was a bit rude.

    Bugger.
     
  12. EN710

    EN710 Well-Known Member

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    Not me! Not going to be distressed, but hey, less cost is nice... :oops:

    Ffs commbank!
     
  13. standtall

    standtall Well-Known Member

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    Think about it, you will be paying less for your next investment property. I predict near empty open houses this saturday atleast for western sydney.
     
    Gingin likes this.
  14. Ed Barton

    Ed Barton Well-Known Member

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    Yes you are. Most banks increased rates for investment loans but not OO loans. Westpac were the first to increase rates for OO loans.
     
  15. 2FAST4U

    2FAST4U Well-Known Member

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    Would people really stop bidding over 15 basis points? Drop in the ocean really. I'm more interested in what the US Fed does tbh.
     
  16. THX

    THX Well-Known Member

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    No point blaming the banks, APRA gave them the excuse.
     
  17. tobe

    tobe Well-Known Member

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    the people who A, remember and have the motivation and B, are eligible to change lenders/products.

    There's quite a high proportion of people are A, and of the rest quite a few will get stuck at B with the changes to lending going on.
     
  18. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Other majors will follow.

    It does open the door for second tier lenders to potentially compete for market share with sharper rates.

    I reckon we'll be back at square one by Q2 2016 after another cut or two are passed on in part.
     
  19. Abooking

    Abooking Well-Known Member

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    Will they also raise their deposit rates ie with online saving accounts etc. In July after Anz raised its HL rates they also raised their deposit rates
     
  20. sash

    sash Well-Known Member

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    Gingin and neK like this.