All Topics / Finance / CBA follows Westpac with Rate Hike

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  • Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Another big four bank has followed Westpac in hiking its variable rates.

    CBA today announced that its Standard Variable Rate will increase by 15 basis points, to 5.60 per cent for owner occupied home loans.

    Investment Home Loan Standard Variable Rate will increase by 15 basis points to 5.87 per cent.

    Fixed rates have not been changed, with the current Owner Occupier Wealth Package 2-year fixed rate remaining at 4.29 per cent per annum.

    CBA today announced an increase in its variable home loan rates by 15 basis points, partially offsetting costs associated with recent changes to capital requirements. Fixed rates and business rates remain unchanged.

    Matt Comyn, group executive for retail banking services said CBA is supportive of an Australian financial system that is strong, stable and competitive.

    “We recently raised $5.1 billion to strengthen our capital position in line with new regulatory requirements implemented in response to the Financial System Inquiry. We have now reviewed our home loan pricing in light of these changes,” Mr Comyn said.

    “As Australia’s largest home lender, we are committed to delivering competitive products and services to our customers, while maintaining an unquestionably strong capital position.

    “Any decision to change interest rates is carefully considered. The cost of the new capital required to make the Australian banking system more secure needs to balance the interests of our customers, as well as the nearly 800,000 households who are direct shareholders and the millions more who are invested through their superannuation funds.”

    Seems like we will be getting more and more refinance enquiries from forum clients to get them away from the Big 4 Banks.

    Cheers

    Yours in Finance
    0-40 Properties in a decade. Ask me how.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of BennyBenny
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    @benny
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    Hmm, so if all of the big 4 do this, is it MORE likely that the RBA can do another rate CUT on Melbourne Cup day?

    As I had heard, it was only the “bubble in real estate” (Syd and Mel) that was stopping them cutting the Cash Rate more. Now, with the APRA changes, and the corresponding changes at the Lenders’ offices, the RBA can now be happy that the “bubble is being addressed” and can act accordingly. Sound right?

    Benny

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    ….well I guess 15 is better than 20 :-)

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Post Count: 12,018

    Just to ensure they are not left out. NAB announce on a Friday. Surprised it is not a long weekend.

    NAB – Homeplus variable rate increases by 0.17% p.a.

    NAB Broker will be increasing the interest rate on all new and existing variable interest rate home loans by 0.17% p.a., effective Thursday 12 November.

    This change responds to the market conditions and regulatory changes that require NAB along with the rest of the industry, to increase the amount of capital applied to residential lending

    Cheers

    Yours in Finance
    0-40 Properties in a decade. Ask me how.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,018

    And there was 4

    ANZ today announced that it would lift rates for all Australian variable home and residential investment loans to partially offset rising regulatory capital requirements.

    The standard variable rate for owner-occupier home loans (Home Loan Index) will increase by 0.18 per cenr to 5.56 per cent – still the lowest Standard Variable Rate of the major Australian banks.

    ANZ’s residential investment property loan index will increase by 0.18 per cent to 5.83 per cent

    The changes will be effective 20 November.

    ANZ CEO Australia Mark Whelan said the decision reflects the significant additional cost of capital banks are now required to hold against home lending.

    “Despite these additional costs, we are committed to working hard to keep lending rates as low as possible for customers and we’re pleased to have been able to maintain the lowest standard rate of the major banks for owner occupiers,” Mr Whelan said.

    The 18 basis point increase will add $36 per month to the average home loan of $242,000.

    Cheers

    Yours in Finance
    0-40 Properties in a decade. Ask me how.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Macquarie is up 20 basis points too – watch them all rise.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Daniel LuderDaniel Luder
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    @dlueder
    Join Date: 2012
    Post Count: 8

    Hello , Im new here,

    With APRA sorting out the bouble,… if there is one, in Sydney and Melbourne, I feel the APRA tool has been over used and now the entire country has to be overly careful. Toss in a few words of secure lending and refer to the good ol GFC to justify rate increases.
    This will not just slow down property investment for all states but prevent a sound transition for the general economy from mining to infrastructure and manufacturing. If banking was the only industry fair enough,…good on them. Very unproductive move for any thing else.

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