Browse Forums Home Finance 1 Nov 13, 2008 1:06 pm Just wondering whether different institutions have different track records when it comes to how long they delay between RBA cuts and their own cuts? Are there any stand-out under- or over-performers?
We are about to sign up with NAB after deciding that it was pretty much much of a muchness in terms of comparison rates. (My wife likes the idea of sticking with the bank she has always been with). However, they are yet to pass on last week's cut, and don't plan to do so until next week. They have not yet announced how much of a cut this will be. 2 weeks in delaying a 0.5% cut on a $250 k mortgage is close to $50 they are siphoning off the average customer. Multiply by, what, a million customers? And you have what looks like a minor bit of tardiness raking them in tens of millions of dollars. If they have a habit of doing this to a greater degree than the other banks then hmmmm maybe I don't want to go with them. I suppose this is not much in the scheme of the things, but it is the principle of the matter. Re: Delays in passing on RBA cuts 2Nov 13, 2008 1:12 pm Two to three weeks delay is common...ANZ was the same...their excuse "we need that time to get letters out to customers"... ...hmm most people probably have internet banking and most customers I'm sure wouldn't mind rates being dropped and then waiting for notification.... mmm....donuts Homer Simpson 1956- Links: Site Costs Ready Reckoner | H1 Addiction Medical Advice | Château TDL: The Backyard Re: Delays in passing on RBA cuts 4Nov 14, 2008 3:48 am russell Just wondering whether different institutions have different track records when it comes to how long they delay between RBA cuts and their own cuts? Are there any stand-out under- or over-performers? We are about to sign up with NAB after deciding that it was pretty much much of a muchness in terms of comparison rates. (My wife likes the idea of sticking with the bank she has always been with). However, they are yet to pass on last week's cut, and don't plan to do so until next week. They have not yet announced how much of a cut this will be. 2 weeks in delaying a 0.5% cut on a $250 k mortgage is close to $50 they are siphoning off the average customer. Multiply by, what, a million customers? And you have what looks like a minor bit of tardiness raking them in tens of millions of dollars. If they have a habit of doing this to a greater degree than the other banks then hmmmm maybe I don't want to go with them. I suppose this is not much in the scheme of the things, but it is the principle of the matter. I can't say one single lender sticks out as having done what you wish. I believe this is temporary phase we are going through. When the dust settles and the level playing field returns between the smaller and the big lenders, you'll see less variation then now. Don't worry, when the smaller lenders regain their posure and start offering keen rates just like Bankwest (well we can't call them small any more with CBA merger pending) has just done with a sub 6% rate, they will all have to match it not to lose. Re: Delays in passing on RBA cuts 5Jan 10, 2009 12:03 pm Well, I've got to say that I'm quite disappointed with the ANZ. I received my rate reduction letter on the actual day of the NEXT month's announcement of an interest rate cut!
It totally infuriates me how the banks put rates up within a few days of an announcement but take weeks and weeks to effect a reduction! Talk about frustrating! Aussie consumers pay for bad Aussie bank investments 6Feb 13, 2009 12:28 am Bella09 Well, I've got to say that I'm quite disappointed with the ANZ. I received my rate reduction letter on the actual day of the NEXT month's announcement of an interest rate cut! It totally infuriates me how the banks put rates up within a few days of an announcement but take weeks and weeks to effect a reduction! Talk about frustrating! At the moment National Bank and Commonwealth Bank are trying to prepare us for their next round of fattening of profit margins when the RBA cuts the interest rates again (they are giving the early signals through the mass media that they are going to increase their margins at the expense of Australian home loan customers again by not passing on the rate cut in full. Very soon the chorus may grow to include the other banks. Westpac, National Australia Bank, Commonwealth Bank and ANZ have all lost billions of dollars in their US mortgage-backed investments (upto 90% of the value) and expect to lose more. They can't take their losses back from the US! They are bracing for rising losses from their bad management decisions here and in the US, in the collapse of ABC Learning and Allco Finance Group, Centro Properties Group. CBA lent money to a number of businesses hit by the credit crunch and confirmed it had millions of dollars in unsecured exposure to struggling shopping centre owner Centro Properties Group. Oops they can't take their losses back from here either! Of course they are going to keep increasing their margins by keeping chunks of the RBA rate cuts on the Aussie mortgages as this is one of the few places in the world they make good profits to pay for the losses they made everywhere else. And they know the ordinary Aussie can't go offshore to get the funds like big business can. Easy pickings for the 4 pillars. Not to be confused with Harold Re: Delays in passing on RBA cuts 7Apr 01, 2009 10:44 pm kumar, you are a bit too cynical but I see what you mean. Do you have a crystal ball? A number or lenders just increased their variable interest rates. BankWest do not offer their low rate home loans to borrowers who don't have 10% deposit. CBA cut their discounts which apply to average loan amounts and Citibank raised their rates. All this while RBA is expected to cut cash rates again. This should not happen, when the timber arrives on site, bent studs should be separated to be cut for noggings and blocks. The studs should never be bad enough to… 4 10889 Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81667 In fairness nobody gave a crap about the ACCC and the gag clauses continued in the pro forma templates of a few other builders after the ACCC took on Wisdom, and more… 19 73284 |