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Lenders who are holding off on rate cut - or keeping it, saying nothing.

Discussion in 'Property Finance' started by dabbler, 24th May, 2016.

  1. dabbler

    dabbler Well-Known Member

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    Will start by saying I have for decades now avoided the major banks mainly due to the times when they forget customers are the ones paying the bills or they take us all for mugs.

    But using smaller lenders does not mean they will always be straight up, many times they learn a few tricks from the big boys.

    Anyway, we saw who did pass on the .25 and in full, who did not pass it on, or only partially passed on ?

    I did not hear anything from homeloans, but if you dig it seems they passed on .25 to IP loans.

    Silence seems to be the name of the game for Liberty, website is hard to navigate anyway, maybe it is hidden there ?

    Suncorp only did part rate cut.

    Also, NAB tried to look good, but from memory they slugged investors 3 times recently while RBA has been on way down.

    What about some of the others ?
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As a lender of "last resort" who dont source funds from APRAhensive bank related entities, I dont expect a rapid or like for like cut.

    they have a significant market advantage,and I would be surprised if they dont play that out .

    ta

    rolf
     
  3. dabbler

    dabbler Well-Known Member

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    Good point.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I think AMP only passed on 0.20% last time.
     
  5. Marty McDonald

    Marty McDonald Mortgage broker

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    This is the issue I have with placing my clients with non banks, mortgage managers and any loan product not aligned with a standard variable rate. There is no transparency on what rate they are going to be on in a few years time.

    I often get statements on non bank loans from people looking to refinance and they always seem to be way out of the market even though they were 0.01% cheaper than everyone else when the client was shopping for best rate. Despite this people (myself included) get fixated on the cheapest rate of the day!
     
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  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Exactly right. There is a lot of 'new business' pricing at the expense of existing borrowers right now - leaving margins being 0.5%+ on loans under the same product, but not SVR pegged.

    Having a lend at 80% or less will certainly help, as borrowers can vote with their feet if the lender doesn't want to play ball.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    spoonerism bank being one of the main offenders there

    ta

    rolf
     
  8. Northy85

    Northy85 Well-Known Member

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    Mortgage managers have got to be one of the biggest cons in finance. You pay a couple of hundred bucks a year for them to take a few extra days until they send you statements and bounce you around to everyone in the office when you want to refinance or get a rate reduction. Can someone tell me what they actually do for their money?
     
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  9. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    For some products absolutely - they're merely adding a margin on top. But there are a number of niche products through mortgage managers that are funded through wholesale sources which can't be accessed directly with the original funder.
     
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  10. Bubica42

    Bubica42 Well-Known Member

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    Not all are the same. I recently refinanced from Mortgage Broker Alliance and the refinance process was very straightforward and fast. It took less than a week and I had a settlement date of 5 days. So there are some good ones out there as well.