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CBA hikes 0.30%

numbercruncher

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Re: CBA Hikes 0.30

Got to love the 20pc profit ontop of the RBA hike :eek:

Seems we are stuck in the Inflation cycle !
 
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What's that? They have raised their deposit rates by .3%?? ha ha ha:mad:
Actually, when did this happen??
 
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BradK - and others

I am surprised that you and others appear surprised/angered/mortified/pissed off. The convention of 10 or more years of jawboning by previous Government to keep mortgage rates unofficially tied to movements in the RBA cash rate was broken in January, it is now gloves off. It was a convention: never a requirement.

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.
 
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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.......?
 
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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.......?
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.

Such is life.
 

ROE

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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?

they then approve your loan.. Gone are those days with these non-bank lenders flooding the market.

so borrow sensibly and apply the rules yourself.

people got to remember banks are commercial institution and they will make as much money as they can out of you.

Same way as you run a take away or a business, if you can charge your customer more for a burger you would do it.

I dont owns bank shares but that is the way the capitalist model works so I guess you have to put up or do something about it like share their profits and buy their stocks :D
 

numbercruncher

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Time to go back to basic and only borrow sensibly ...
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.

If you are just a mug punter like most of us, ie, we hold down a job to earn a wage, and decide to go a'gearing, then 20% max give a goodnight's sleep. With an LVR at 70% and at that gearing, prices have to drop by over 65% before you get into margin call.

That is tuck up in bed and have good dreams territory as opposed to waking up in a cold sweat. Yep, been there.
 
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Anyone seeing David Wenham in 'The Bank'?

Im going to the video store to get it for another viewing....

Boo hoo for the banks if borrowing costs are high for them. They got us into this mess, and I guess they will want US to get them out.

F*#$&*$ing Bastards!

Brad

PS. I have OODLES of equity and a comparitavely small mortgage. So, I can talk!
 

numbercruncher

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Just Had a thought !


Maybe the CBA is expecting a Realestate crash, or atleast big financial stress amoungst the most stretched mortgage holders.

Therefore they raise rates over and above the RBAs effectively encouraging, especially those most financially stressed, to shop around and take their business elsewhere ?

A conspiracy to help get them off the hook for the more dubious mortgages :cautious:
 

Bill M

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I think you will find that in January when the banks bumped up their margins on mortgage rates that the CBA went up the least. All they are doing now is "catch up" to the others.

Standard variable rate rises:
ANZ: 0.20% to 8.77%
St George: 0.20% to 8.77%
Westpac: 0.15% to 8.72%
NAB: 0.12% to 8.69%
CBA: 0.10% to 8.67%

Source here.
 
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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?
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.
 
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Hey Juddy,

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.
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

Regards,

Buster.
 
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I have 90% of my banking with Heritage Building Society. They are excellent. They even held off on some rises as long as possible. And we knew our manager by name and he always had time for us whenever we needed anything - moved now and haven't needed to meet local manager yet. Personal service, can't beat it.
 

ROE

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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.
Banks lower their standard ever since non-bank lender enter the market because non-bank lenders dont play by the same rules :D
 

ROE

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Hey 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

Regards,

Buster.
My letter to ME and they haven't reply yet.. Everyone should do the same and ask their banks :)

To who it may concerns
I just receive a letter from ME advising me of increase home loan regardless of RBA interest rate movement due to the cost of funding resulting from US sub-prime credit crunch.

My question to ME is and if you can address these concern I'm all open ears.

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)
http://www.rba.gov.au/PublicationsAndResearch/StatementsOnMonetaryPolicy/Nov2007/banks_funding.html
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?

Thankyou
 
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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)
http://www.rba.gov.au/PublicationsAndResearch/StatementsOnMonetaryPolicy/Nov2007/banks_funding.html
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?

Thankyou
Not quite ROE. Here is a bit from ME web-site on where they source the funds.

Our 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.
and, again

So you can be rest assured, your superannuation fund or union and Members Equity are looking after your very best interests.
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.

I'm not knocking ME, banks, CU's or building societies. They are just facing up to the financial facts which are being dealt to them and they are a business. It is painful for those at the pointy end and if, apart from a mortgage, punters have maxed out credit cards (multiple), personal loans and car loans. Phew! Not pretty in any way shape or form.
 
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Stupid form by the CBA. Overall, they've increased their rate 0.15% above the RBA movements (0.10% previously & 0.05% now), which is less than most of the other major banks (ave 0.18%-0.20%). By getting the timing wrong, every ACA-loving bogan in the land now believes them to be evil, despite the fact they've moved their rates less than their competitors. Given the average CBA loan is a lower balance than their competitors, they've p!ssed off their target market.

They now have both a PR nightmare & less profit from their book compared to their rivals.
 
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