CBA increases rate

Sorry to burst your bubble, but Westpac solved their system issue and they did raise their rates on investment loans a few weeks later. The 0.2% increase is in addition to the first round of increases and it applies to everyone.

 

I think it's a start of another cycle.

 

Yep in Sydney and Inner/Middle Melbourne.......

 

It is more to do with sentiment of potential buyers.
15 basis points on it's own is not a problem for those with loans or those considering purchasing but the idea that rates are increasing is a concern, or at least a bargaining chip, for those considering buying.

 

also does anyone actually have or know of anyone who actually pays the standard variable rate?
5.6%?? surely no one is paying that!

 

Haha - yes, yes it can

 

unlikely, that normally only happens with a RBA increase.

 

Most of my loans are fixed at 4.99% for 5 years and I've only got one or two still variable with WBC. I suspect, even after the variable increase, its still below my fixed rate.

I don't really care. Servicibility at these really low levels is super easy and cash flow positive anyway. They could run back to 8% and I wouldn't care. Rents would need to spike a bit though...

Cheers,
Michael

 

I would also hope nobody is paying 5.6%. Keep in mind though that your various professional packages and other products all price their interest rates as a discount on the standard variable rate.
You may not be paying the SVR, but you'll still be hit with the increase.

 

And will!

 

Many are!
especially older people who have been with their bank for years.

 

Sash , mon I think Yu bin smokin toooo much o y' product ... mon

Cliff

 

No mon....you be taking dem laughing gas mon! Ja be with you mon!

The cycle in Sydney and Inner/Middle Melbourne is at 12 o'clock.......

Oh...by da way dem sun be good for you english mon! Just don't stay in dem sun mon....ja ere that something bout madmen and englishmon in da afternoon sun.....

Ja be with you mon!

Ja rastafari........

 

Here is another reason...the press reports being extremely negative...

http://www.domain.com.au/news/sydne...gain-upper-hand-domain-group-20151020-gkdkbx/

Interest times indeed.....

 

No, a 15 basis point increase won't stop everyone from bidding. But it will stop some - in particular, those who are overextended with leverage. This reduces the buyers of numbers in the market, and makes it harder to sell. The effect is either price stagnation or falls.

Tighter credit = fewer buyers

 

Banks were playing around with rates before APRA changes. Remember when they decided not to pass on the entirety of RBA rate cuts to their customers? The public outcry was stupid and hilarious.
If I owned a business that had thousands of customers who had to pay me more money based on a rate that I set, you can be sure as hell I would be jacking that rate up!

 

Ah I see. Ok then this is the first time I've ever been glad to lock in all my rates lol. I've always gotten it wrong!

 

I'd be cheering with 3.2% a quarter for the rest of my investing life. 12% a year= boom numbers still

 

Yep...but bear in mind 80% of lending is with the majors, as a recap this is what has happened in the last 3 months. It definitely makes it harder for investors...soon there will be mass panic in this camp s most are specufesters

1. Remember a lot of banks put up rates 0.27 for investor another 0.15 -0.2 % will have an interest rate increase of 0.41 to 0.47%
2. Banks have reduceds discounts on investor loans down to about 0.9%. A lot are not budging
3. Most now want 12-20% deposits as a minimum
4. Mortgage insurers are pricing risk on investment loans much higher.
5. Most banks use 7% plus for serviceability.

What does this mean...investors panicking and selling now are essentially playing into the hands of patient investors......

 

Interesting to see that both were announced 2 days before auction day. Chances of the next bank announcing it next Thursday? They'll do it to completely take the wind out of the market