joles,
from news.com.au:
From today, the Government will guarantee all deposits – up from a previous cap of $20,000 – in Australian banks, building societies, credit unions and Australian subsidiaries of foreign-owned banks.
Browse Forums General Discussion Re: 1% rate drop in official interest rates.. 121Oct 12, 2008 11:23 pm joles,
from news.com.au: From today, the Government will guarantee all deposits – up from a previous cap of $20,000 – in Australian banks, building societies, credit unions and Australian subsidiaries of foreign-owned banks. Re: 1% rate drop in official interest rates.. 122Oct 12, 2008 11:26 pm grace_slick You know the guarantee thing the Government's announced for all bank account deposits? Does this mean ALL of them, no matter how much is in someone's account, or is it only up to $100,000 The government has provided an unlimited guarantee for ALL deposits held by individuals, in any financial institution, and of any amount, for the next three years. More, they have also guaranteed the funds of any overseas bank who lends money to an Australian bank/lender. Kevin Rudd appears to have actually gone further than any other government thus far. Which may turn out to bite him. It's easy to see why he did it (he's ensuring our banks can source funds globally again) but he's apparently also given the smaller lenders (like Wizard and RAMS) carte blanche to borrow overseas and compete with the big 4 again. Any money they borrow is secured by the government. Perhaps the legislation will have some caveats not announced today but given that the actions of some smaller lenders in trying to gain market share was one of the reasons why this whole mess got started it's arguable if he's made a sound judgement. I'll bet a few Sir Humphreys have been telling him ..."it's a very brave move Prime Minister." It remains to be seen how the market reacts but individual savings are safe. Re: 1% rate drop in official interest rates.. 123Oct 12, 2008 11:27 pm Thanks Matt... was maybe a dumb question. God only knows how I got HDs in my economics subjects at Uni! I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: 1% rate drop in official interest rates.. 124Oct 13, 2008 6:39 am joles . God only knows how I got HDs in my economics subjects at Uni! Ah, yes, : my daughter has almost finished one of those at Uni too but still seems to ask me for extra money all the time Budgeting doesn't seem to be her strong point: I don't think they've yet covered the the simple economic theory of Live Within Your Means Re: 1% rate drop in official interest rates.. 125Oct 13, 2008 8:40 am Ancient Mariner Perhaps the legislation will have some caveats not announced today but given that the actions of some smaller lenders in trying to gain market share was one of the reasons why this whole mess got started it's arguable if he's made a sound judgement. I'll bet a few Sir Humphreys have been telling him ..."it's a very brave move Prime Minister." I have a good friend that is a mortgage broker - in the last 12 months, 10 non-bank lenders have closed shop - that is, decided to stop new loans and only have staff to maintain the existing loan book. Almost every other NBFI has new rules that state they will only lend to their top 10% of mortgage brokers. To me - these actions indicate that smaller lenders are not going to find it any easier - even if they do go overseas to source funds - parties may not be willing to lend to them - or will lend at such high rates to offset the risk. That's not going to make them so attractive to home buyers There are also moves to change capital adequacy requirements in a system more aligned with tiered interest rates based on your level of credit risk. On a different note - while most people 12 months ago could have gone into the bank and got 0.7% off the standard variable rate - now banks are starting to introduce new requirements. ANZ has just announced that to get 0.7% discount you'll need to borrow minimum $700k (previously it was $250k). Most other banks expected to follow suit. After 4 years - we're in! Re: 1% rate drop in official interest rates.. 126Oct 13, 2008 9:00 am You have to realise those mortage brokers don't actually lend the money they get a commission for every loan brokered. Now if people stop getting loans they stop getting there commission and start to lose money and hense close shop. Re: 1% rate drop in official interest rates.. 128Oct 13, 2008 10:11 am ausfatcat You have to realise those mortage brokers don't actually lend the money they get a commission for every loan brokered. Now if people stop getting loans they stop getting there commission and start to lose money and hense close shop. I stated that it was the NBFI (non-banking financial institutions) = non-bank lenders that were closing shop - not brokers. After 4 years - we're in! Re: 1% rate drop in official interest rates.. 131Oct 13, 2008 5:47 pm d@n yes , this is why i went and rolled all my savings into a fixed term deposit two weeks ago Re: 1% rate drop in official interest rates.. 132Oct 19, 2008 6:14 pm d@n If you have a mortgage, just move all your savings to an 100% offset account attached to your home loan, you'll stop worrying about earning interest on your savings. You'll start lowering your interest on your home loan. It's discussed here https://forum.homeone.com.au/viewtopic.p ... 642#117642 Re: 1% rate drop in official interest rates.. 134Oct 24, 2008 10:59 pm I wish I'd put my savings in a term deposit...maybe then I'd be getting 7-8% like I used to a month ago in my normal online saving account instead of the now 5.75% I get. *depressed*
But for me right now, a term deposit isn't that practical, as I've just moved into my new place and our spending is quite erratic, with fixing up a few things, paying new bills we're not used to yet, and buying some things for around the house...I don't want to put it all in and then have nothing left I can access. I could put in just some of it, but meh. How the hell did I become a senior member!? I know nothing! Re: 1% rate drop in official interest rates.. 136Oct 25, 2008 8:46 pm No, a term deposit means you can't access the money until the term ends.
I mean, you CAN really, but you'll be penalised. You won't get the interest you could've gotten if you'd completed the term...I think some of them won't pay ANY interest at all if you withdraw early. Basically, you can't just chip away at the money. You either have to complete the term to get the interest, or withdraw (aka. cancel) the whole thing I think. How the hell did I become a senior member!? I know nothing! Credit Crunch 137Nov 01, 2008 5:18 pm stonecutter1309 I have a good friend that is a mortgage broker - in the last 12 months, 10 non-bank lenders have closed shop - that is, decided to stop new loans and only have staff to maintain the existing loan book. ANZ just stopped 80% Low doc loans, Citibank stopped commercial property loans and personal loans to concentrate on home loans. There is also a rumour that 100% home loans are going to be withdrawn in the next 6 months. ING Direct already withdrew their 97% plus LMI home loan back in September. Hello everyone, After some suggestions and ideas about how to put a concrete path around the drop edge beam area on our new build. We are required to have a concrete path… 0 11037 The distance between my DEBs varies from 4.1m at the narrowest to 8.1m at the widest. 5 25922 I would like to build our new house with the rear section approx 1 metre out of the ground, I don't particularly like to go bearers and joists so concrete slab all the way… 0 3228 |