Um, the credit unions are not exactly saints you know. Same dishonour fees as banks. Charge for direct debits, levy excess ATM fees, have increased mortgages rates by the same or more than the banks. Really no different from any other financial institution except that the banks, if you buy their shares, pay dividends which can offset such costs. With CU's and such you get none of those. CUs have merged creating institutions as just as faceless as banks.I am one of those people who actually have more cash than debt. Sorry folks. Baby Boomer. Anyway, have you noticed how the bastard banks always jack up the borrowing rates immediately, and then some (as with the CBA) but they never are that quick to increase the deposit rate, and then without some. Yes, I agree, bastards all. I put most cash in places like credit unions and ING, rather than conventional banks. I just hope these people are not playing around with derivatives. Anyone know.......?
8.79% , may as well call it 9 , the $%#^&$$ @rzoles.
Pirates they're all pirates !
http://www.scopical.com.au/articles/BusinessandFinance/2503/Commonwealth_first_to_hike_loan_ratesCommBank said today that it was raising rates by 0.30% on its home and business accounts, meaning the new rate stands at 8.97%.
Not having a shot at you, Bro, but when wasn't the time to borrow sensibly? I blew up an account early last year and that, in hindsight, was a grand time to do it.Time to go back to basic and only borrow sensibly ...
CBA thought I was pretty weird using interest rates in double figures for my own calculations. They only applied 1.5% above the current rate when approving the loan.Time to go back to basic and only borrow sensibly ...
remember in the old day? bank take your applications
and apply a extra 2%-3% on top of the current rate to see if
you can still afford to replay if rate do rise by that much?
You omit that ME has absorbed a number of the previous rate rises.. unlike any of the 'other' lenders.. this is thier first hike in some time..I noticed Swannie gave a serve to one bank which raised rates by 0.2% as excessive but then was totally silent when Members Equity did exactly the same. Oh yes, I forgot. ME has a union association. Odd about that.
Banks lower their standard ever since non-bank lender enter the market because non-bank lenders dont play by the same rulesCBA thought I was pretty weird using interest rates in double figures for my own calculations. They only applied 1.5% above the current rate when approving the loan.
My letter to ME and they haven't reply yet.. Everyone should do the same and ask their banksHey Juddy,
You omit that ME has absorbed a number of the previous rate rises.. unlike any of the 'other' lenders.. this is thier first hike in some time..
Don't work for them or have any dealings with them, did some time ago and found them excellent.. If I were ever to require another loan, it would be with them
Not quite ROE. Here is a bit from ME web-site on where they source the funds.1. You called yourself a superfund bank, dont you source most of your fund from superannuation? so what is sub-prime fallout funding cost got anything to do with ME accessing its money?
2. According to the RBA statement on monetary policy (Nov 2007)
banks source 25% of their funding from oversea
how much of this is ME real oversea source of funding? and is it really effecting your borrowing your cost or we just rise rate people everyone else does it to better ME bottom line?
and, againOur SMHL program raises funding by issuing bonds and mortgage backed securities that are rated AAA or equivalent by Standard and Poor's and Moody's Investors Service.
Seems they are in the same life (sinking) boat as any other financial institution. I seem to recall that they recently pulled a $500M bond issue because they couldn't find buyers are the right price. Things may have moved on since then of course.So you can be rest assured, your superannuation fund or union and Members Equity are looking after your very best interests.