Rate cuts passed on by different lenders

St George Bank & Westpac passes on 0.14 for P & I loans and only 0.10 for interest only loans

 

I have one ANZ Io loan just roll over to P & I,with exactly the scenario above,makes a difference finding an extrs $300 PM to cover it,I was told it was because of the insurer, being a 90% loan.[/QUOTE]
Yep. Your stuck for a while. ANZ will roll back to I/O if the original application was sub 80% only.

 

Anyone else notice that banks have upped term deposit rates despite the RBA cut. Is this something we've seen before? ANZ looks to have gone just over 50bps from 1.95 to 2.5% for 4mths.

 

Thanks Jess(and Colin)! Just called ANZ and they agreed to give me 1.45% off SVR after I quoted CBA's 1.5% off. Yeah baby yeah!

 

Great result Lacrim.

 

Yes I noticed this, and in combination with several bits of news recently I think that cost of funds for banks is increasing, hence not passing on full rate cut. The increase of deposit rates indicates that they are pushing for more locally sourced funds at what can only be described as very high rates.

With this in mind I am quite tempted to look at fixing at least a portion at rates below the current discounted variable rates.

 

I figured it'd be something to do with costs associated with sourcing overseas funding and/or them wanting to load up on cash in preparation for BASEL IV.

The ABC offers their thoughts below;

Why are banks lifting deposit rates not cutting loans more?

 

Just theorising here; but it could simply be banks trying to reallocate where their funding comes from (want more deposits relative to other forms of funding, like wholesale funding). Aussie banks like working with incentive measures - using the tools they have (pricing) to encourage certain behaviour. Interest Only/Investment loans recent repricing are a great example of this.

Deposits are a large part of their funding base (at least for the majors). With recent rate drops, the incentives drop for depositors to keep their holdings in cash falls, they take on more risks and venture into other investments. This means over time, the proportion of deposits as the majors source of funds fall. The deposit portion of funding is domestic based, as its from Australian consumers.

With the rate environment here downward and international markets potentially increasing (US, etc) - it could make sense to try and rebalance their source of funding from those markets to the domestic deposit.

Also deposits are also favourable form of funding because they are more stable than international markets, assist in meeting the new liquidity requirements that APRA have implemented.

All theorising, would be keen to hear from others.

 

@Lacrim woohoo thats a great result.

 

My ANZ mobile lender just wrote to me indicating that she has already negotiated a 1.45% discount. Previously the discount was 1.25%. I'm really pleased with the improvement.

 

Ok, I call BS, these thieving *******os have been getting away with murder for 2 decades or more.

Stuff their profits, this is all a smoke screen.

Previous governments have all done back room deals with the banks and they rely on people to not know or have poor memories, like when the govt wanted to move away from cash, so they did a back room deal with the banks that for x years they would have to provide services for free , then after that, you can have at it guys cause the public will have forgotten.

When they thought labour may sneak in and a Royal Commission would ruin the party, they all fell over themselves to give the full cut, now, well, sorry, our costs are going up.

Don't take me the wrong way, we need businesses to be profitable and be healthy, but we do not need thieves with the keys and a case of rum to be left alone to do as they wish, as long as they all watch over each other, this is BS.

I am surprised that Turnbull has come out and said something, feigned outrage maybe, but it is probably what most feel, they need to shake them all up.

 

Bank of Sydney will lower its variable rate mortgage to 3.63 per cent from 3.88 per cent

 

rams is down just 0.10%

2 year fixed is 3.89%
3 year fixed is 3.99%
and 5 is 4.19%

 

Yes ANZ is giving 1.3% discount for total lending between $250k and $700k and 1.45% for $700k +

 

This is an improved offer over the past few months? They only gave 1.15% discount for OO P&I loan back in April 2016, and it was through the broker channel too. Amount is approx $600K with under 80% LVR. I suppose that I can't do a pricing request that soon?

 

Shouldn't be an issue to ask again.

 

Yes you can. In fact i've done couple in the last two days for existing deals & original discounts were 1.20%

 

Thanks Mitesh. Do you think it's possible to do better than 1.45% with ANZ?

 

Don't think on the rate, may be a free package fee.

 

Great suggestion. I'll give it a try.