The Reserve Bank (RBA) has cut interest rates by 0.25 of a percent (25 basis points) taking the official cash rate to a historic low of 3.00%.
"The RBA has responded to deteriorating market conditions with a conservative 25 basis point cut, bringing the cash rate down to a 49 year low. The areas of most concern are worsening retail sales and rising unemployment. Despite this action, the major banks have already signalled that this and any future cuts may not be passed on in full to mortgage holders".
Interesting to see what pans out over the next day or so.
Richard Taylor | Australia's leading private lender
The Commonwealth Bank will cut its standard variable home loan interest rate by 0.10% following the Reserve Bank of Australia's cut to the official cash rate. The Bank's new standard variable rate will be 5.64% with its Line of Credit product reduced by 0.05%.
The new rates will be effective from Friday 17 April 2009 for new and existing customers.
Richard Taylor | Australia's leading private lender
How about RHG are they passing on nothing as usual?
Only CBA as i type have made comment.
All other lenders with the exception of Bank West (No reduction there) have it under review).
Richard Taylor | Australia's leading private lender
NAB will not pass any cut on to its customers.
PosEnterprises wrote:How about RHG are they passing on nothing as usual?I see NAB has just purchased a heap (may be that should read 'rather large bundle'???) of old Rams (now RHG) loans from their loan book and given them a fancy new name and website. Hopefully you may get some rate relief there in the near future. ?
Cheers
Response from RHG – So looks like they are still trying to squeeze more money until say make a decision!
Thank you for contacting RHG Home LoansRHG interest rates are still under review by management.If we can be of any further assistance, please visit our website at http://www.rhgl.com.au or alternatively contact us on 1300 658 489, (Monday-Friday 8.30am-8.30pm EST).Sincerely
Customer Contact Centrewhat are the current rates for pro pack holders anyway!
Are they still giving discounts out?
"
WESTPAC has become the third major bank to cut its standard variable mortgage rate by 10 basis points.
Westpac also slashed 25 basis points off its rates for business loans and credit cards.
The move comes after Commonwealth Bank of Australia and ANZ lowered their standard variable home loan rates by 10 basis points in the wake of a 25 basis points cut to the cash interest rate by the Reserve Bank on Tuesday.
Westpac's new standard variable home loan rate of 5.81 per cent would become effective on April 20, the bank said in a statement. "
Anyone betting that they will cut again in May if things keeping getting worse?
least they are cutting them!
im happy my bank pulled its finger out "westpac"I still don't undestand why so many investor/home owner went to RHG or GE money or Wizard for loan at the beginning….????
And now worrying about the rate……Can someone enlighten me!!!
Was originally with RAMS until they got taken out and then RHG took over. I had no choice in that matter and with 3% exit fees was way to expensive to get out so early.
That is why i am with RHG.
Thank you for contacting RHG
RHG management have made no announcement regarding the interest rates at this stage.
Kind RegardsCustomer ServiceStill no cuts with RHG???
Pos, you must be paying way over market rate at the moment. On the pro packs you should be able to get the standard 0.7% discounts, but you may get more depending on overall loan size. Just got one of my clients 1% off with a major bank for a loan size of around $2mil.
So how much are your exit fees going to be and when do the drop off?
Oh, and one potential problem is that many lenders have restricitons on refinancing loans that were originally low doc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry am waiting to get out when it expires otherwise up for about $13k in exit fees and the rest. Is there a problem getting finance from other lenders if it was originally Lo Doc finance.
Depends now if you can go full doc.
If lodoc is a must you can discount any lender that insures with QBE PMI as they have stopped providing cover on refinances.
With Gemworth they require last 2 BAS with most lenders.Richard Taylor | Australia's leading private lender
Would be interesting if the government passes legislation to ban bank exit fees – would make the banks more accountable for there decisions not to pass on rate cuts. Would definitely create more healthy competition between lenders maybe improving the services they provide and reducing fees.
I dont believe legally they can regulate what lenders charge for exiting a loan and even if they tried to lenders would incorporate it in some other way.
Hardly going to make a loss on a fixed rate loan or similar where the cost of funds has changed and the lender has to bear the cost.
Richard Taylor | Australia's leading private lender
Yes Richard your right they would have to cover their cost somehow – more or less just commented about exit fees because of the story I read on news.com.au- Failure to pass on rate cut angers Government
- Cabinet examining ways to increase competition
- Could consider banning bank exit fees
THE Federal Government is considering banning bank "exit fees" to help borrowers frustrated by the failure of lenders to pass on interest-rate cuts.
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