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Rate Cut in February 2016

Discussion in 'Property Finance' started by Waterboy, 29th Aug, 2015.

  1. Waterboy

    Waterboy Well-Known Member

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    Tekoz likes this.
  2. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    Ive got a feeling a rate cut might coincide with a higher percent been put on IP loans and OO will benefit from the rate cut. Hoping not but we all know how blood thirsty banks can be :/
     
  3. euro73

    euro73 Well-Known Member Business Member

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    The more likely scenario would be for a rate cut to be passed on to P&I and not passed on to I/O
     
  4. jins13

    jins13 Well-Known Member

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    I agree with this. Trying to have a level playing field for first home owners and people wanting to buy their PPOR. I think for now, the good times for investors are being squeezed due to the APRA recommendations and the banks across the board increasing investment loans/ interest rates.
     
  5. Tekoz

    Tekoz Well-Known Member

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    But somehow the house price is already expensive now ?
    I guess this is due to the fact that China has just recently cut their interest rate.
     
  6. Bran

    Bran Well-Known Member

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    Says who? I don't buy this crock. Sure, I can't afford Point Piper either.
     
  7. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Maybe reserve bank might drop the rates but how the banks will react to this is a different story.
    I think Banks / Lenders are going to be under pressure next year from their share holders.
    So I think rates will be steady for quiet some time.

    Banks / lenders might offer other incentives such as cash rebates, Higher LVR's without incurring LMI but this will only be for owner occupier loans.
     
  8. Waterboy

    Waterboy Well-Known Member

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    Swap rates have gone down close to May levels. And some lenders have cut fixed rates as a result (outside the OO & IP rate differentiation discounting phase we have seen).