Westpac 20bps Rate Rise Across the Board

Discussion in 'Loans & Mortgage Brokers' started by Waterboy, 14th Oct, 2015.

Join Australia's most dynamic and respected property investment community
Page 2 of 8
  1. Waterboy

    Waterboy Well-Known Member

    Joined:
    29th Aug, 2015
    Posts:
    2,815
    Location:
    Denial is Not a River in Egypt
    Wistful thinking. History shows there's a 110% chance of the others taking advantage of the situation.
     
    Waterboy, 14th Oct, 2015
    #21
    Terry_w likes this.
  2. Waterboy

    Waterboy Well-Known Member

    Joined:
    29th Aug, 2015
    Posts:
    2,815
    Location:
    Denial is Not a River in Egypt
    The Westpac Effect:

    The Australian Dollar and Australian Government Bond Yields have dropped on the expectations the RBA will be forced to cut rates further as the economy at the moment cannot withstand rate hikes like what Westpac did.
     
    Waterboy, 14th Oct, 2015
    #22
  3. Watson1

    Watson1 Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    197
    Location:
    Melbourne
    Its all a collusion, the banks are all sitting at a round table taking in turns of breaking the 'bad' news.

    CBA/NAB were to first to announce investment discretionary pricing cut, ANZ with the .27% and now WBC...
     
    Watson1, 14th Oct, 2015
    #23
    Bran, WestOz, albanga and 1 other person like this.
  4. Mick C

    Mick C Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    206
    Location:
    Sydney
    Even the OO loans are not spared....

    Credit union all the way!
     
    Mick C, 14th Oct, 2015
    #24
    juzzy likes this.
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,932
    Location:
    Australia wide
    The lenders know that once they have you it will be difficult for you to move to another bank - its like shooting fish in a barrel.
     
    Terry_w, 14th Oct, 2015
    #25
  6. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    2,304
    Location:
    Democratic People's Republic of Australia
    What is the guarantee they'll pass anything on though?
     
    2FAST4U, 14th Oct, 2015
    #26
  7. Kashmir

    Kashmir Well-Known Member

    Joined:
    5th Aug, 2015
    Posts:
    78
    Location:
    Sydney, NSW
    Kashmir, 14th Oct, 2015
    #27
  8. ross100

    ross100 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    231
    Location:
    Melbourne
    All other banks will surely follow ... what will be the impact on all of this.
     
    ross100, 14th Oct, 2015
    #28
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,225
    Location:
    Sydney or NSW or Australia

    Talking of GFC, I noticed an advert in the AFR for US residential mortgage backed securities @ 7.5% pa for umpteen years.

    We've seen what happens with them. :eek:
     
    Scott No Mates, 14th Oct, 2015
    #29
  10. Bentley

    Bentley Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    102
    Location:
    Adelaide
    Great for those that decided to go for fixed rates earlier this year.
     
    Bentley, 14th Oct, 2015
    #30
  11. Waterboy

    Waterboy Well-Known Member

    Joined:
    29th Aug, 2015
    Posts:
    2,815
    Location:
    Denial is Not a River in Egypt
    No guarantee. But that will hopefully cap their cost of funds so they don't have to raise rates any further!
     
    Waterboy, 14th Oct, 2015
    #31
  12. Hodge

    Hodge Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    679
    Location:
    Melbourne
    Mate of mine received a letter in the mail last week from bendigo bank informing him they are increasing his interest rate on his home loan by .20%.
     
    Hodge, 14th Oct, 2015
    #32
  13. Baker

    Baker Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    1,003
    Location:
    I like bread
    Will this include Westpac subsidiaries, ie Bank SA, St George?
     
    Baker, 14th Oct, 2015
    #33
  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,932
    Location:
    Australia wide
    These are run as separate businesses and no announcement yet, but I would imagine they will follow suit soon.
     
    Terry_w, 14th Oct, 2015
    #34
  15. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,392
    Location:
    Sydney
    larrylarry, 14th Oct, 2015
    #35
  16. Tom Alaka

    Tom Alaka Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    48
    Location:
    Qld
    What a cynical grab for cash. The banking cartel will follow.
     
    Tom Alaka, 14th Oct, 2015
    #36
  17. Sashatheman

    Sashatheman Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    164
    Location:
    Sydney (West), Australia
    So if they are increasing rates outside the RBA announcements, and it is likely that there will be another rate cut by the RBA soon, does that mean that Westpac will not pass anything on.
     
    Sashatheman, 14th Oct, 2015
    #37
  18. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    2,304
    Location:
    Democratic People's Republic of Australia
    Most likely otherwise it defeats the purpose of hiking rates in the first place.
     
    2FAST4U, 14th Oct, 2015
    #38
  19. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Let's take a (slightly better than average) property investor with say $2.0M of borrowings. Let's say the PI has 8 x IPs worth about $300K ea when purchased. If IRs just went up 0.2% that is $4,000 pa extra costs the PI has to find (or $80pw). Surely the next step is to send out the $10pw increased rent letters to the tenants of those 8 x properties, yes? Someone has to pay and it isn't going to be me :) - end user always pays.
     
    Propertunity, 14th Oct, 2015
    #39
    Lollie and Ardi like this.
  20. aussieB

    aussieB Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    389
    Location:
    Darwin
    You reckon the credit unions won't increase rates ?
    I am with CUA and am thinking I should go fixed now :(
     
    aussieB, 14th Oct, 2015
    #40
Page 2 of 8