Will banks raise mortgage rates independent of the RBA?

Discussion in 'Loans & Mortgage Brokers' started by fumid, 7th Mar, 2016.

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  1. fumid

    fumid Well-Known Member

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    Bankwest has raised around 0.14%, it was said the other banks will raise the rate soon, what do you reckon? did you guys get fixed rate or variable rate?
     
  2. Terry_w

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

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    Yep i think they will.
     
  3. JK200SX

    JK200SX Well-Known Member

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    When did BW raise their rates?
     
  4. Hanison

    Hanison Well-Known Member

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    Sneaky, sneaky.
     
  5. Redom

    Redom Mortgage Broker Business Member

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    So far this year we've seen LOC rates move back up - this makes sense as SVR rates rose late last year but LOC didn't. Hence for some LOC were cheaper than SVR's, which has now been reversed.

    I think we'll continue to see an ever changing market this year as lenders compete for more business, with refinance activity making up a larger market share. This competition will lead to lots of promos (1.50% discounts from majors, 3.99% fixed rates, etc so far).

    There's nothing really holding banks back now, most/all are under the APRA 10% cap on investment again, so theres some strong pricing being offered on investment loans again, thats brining it closer to O/O rates again.

    May see further rate rises later this year to reflect additional capital requirements - this may balance out the increased competition. It makes sense to price for risk as a way to incentivise certain activities (e.g. pricing P/I, investment loans, etc).

    So in summary:
    1. more complexity with lots of pricing changes,
    2. more competition with lenders wanting to win business driving prices down; and
    3. a potential regulator induced rate rise later this year.

    Cheers,
    Redom
     
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  6. seachange

    seachange Well-Known Member

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    Just spoke to my NAB business banker. They will put rates up in April, with more increases later in the year . He was very definite about it
     
  7. Blacky

    Blacky Well-Known Member

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    And he would know this how?
     
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  8. Big Will

    Big Will Well-Known Member

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    He is a business banker... duh!
     
  9. Redom

    Redom Mortgage Broker Business Member

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    NAB announced a suite of rate changes last Friday - effective 4 April. There were a few media articles about it.

    They're moving their pricing structure to include 'owner occupier' vs 'investor' as well as repayment type (current model).
     
  10. Rich W

    Rich W Well-Known Member

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    So would you suggest the investor rates would more likely to go up rather than the OO rates?
     
  11. JDP1

    JDP1 Well-Known Member

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    No doubt bank borrowing costs for loans/cost to do business has gone up and they will look to pass these on one way or another. I dont think there will be much in the next 2-3 months..then if their costs are still high by then, then yes, independent rises will be here.
     
  12. fumid

    fumid Well-Known Member

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    That's what I heard too!
     
  13. Redom

    Redom Mortgage Broker Business Member

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    According to their announcement, Investor P/I loans going up. A few select investors would've managed to avoid the rate rises to investment loans by having it P/I with NAB in the past, they've fixed this up with their new segments and pricing structure.

    Don't see a change in O/O rates, either I/O or P/I according to the announcement made.
     
  14. fumid

    fumid Well-Known Member

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    so better fix the rate with NAB for investment property mortgage.
     
  15. Redom

    Redom Mortgage Broker Business Member

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    I wouldn't go that far - a rate rise doesn't necessarily mean its best to fix.

    The rate rise is for P/I Investment loans too - not many have their investment loans set this way anyway.
     
  16. fumid

    fumid Well-Known Member

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    I do P/I investment loan lol