WESTPAC will raise its variable mortgage rates next month as part of its efforts to help meet increased capital requirements.
THE bank's owner occupier home loan variable rates will increase by 0.20 percentage points to 5.68 per cent on November 20, when residential investment property loan rates will go up by the same amount to 5.95 per cent.
The discussion now is on RBA rate cuts. The Kouk is tweeting a cash rate of 1.5% by mid 2016. Effectively that means that savers will be funding the APRA regulations on investment loans and the stiffer capital requirements.
Any expressed market opinion is my own and is not to be taken as financial advice
The discussion now is on RBA rate cuts. The Kouk is tweeting a cash rate of 1.5% by mid 2016. Effectively that means that savers will be funding the APRA regulations on investment loans and the stiffer capital requirements.
Who the hell pays over 5% on a mortgage rate now days?
A return to mean is coming, and it's the cascading fall in prices that will gather momentum. Just as confidence builds a market - the same drop can cause a rapid downward spiral.
Cash is king in a crisis
The return to mean is about 8% annual growth - even Sydney has a way to go to get that for the last decade, so if you are talking about a return to mean it is onward and upwards for prices for some time yet.
Almost a decade ago there was a severe economic crisis and there was only a few countries that experienced cascading falls in house prices, and these were economies which were in crazy booms. Only eejits believe the doomster nonsense that such a large event will occur again so soon and even greater fools think that such an event will cause stagnant economies to crash.
At some stage you must wake up to this silliness Ted and try to get back on with your life.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
The discussion now is on RBA rate cuts. The Kouk is tweeting a cash rate of 1.5% by mid 2016. Effectively that means that savers will be funding the APRA regulations on investment loans and the stiffer capital requirements.
Will this hike by Wespac bring it in line with other lender's rates (considering the usual 'package' discounts etc)? Or will they now be higher? Still lower etc?
Will this hike by Wespac bring it in line with other lender's rates (considering the usual 'package' discounts etc)? Or will they now be higher? Still lower etc?
Do you think other lenders will follow?
Westpac are already uncompetitive, so this will make it worse for them. However their subsidiary St George is better priced and has better lending policies, so it will be interesting to see what St George do, maybe as a smaller bank they don't have the same capital requirements.
St George have recently reduced their rates, and they give discount of 1.3% and up to $2000 cash to refi a loan from another bank - $1500 for investors.
I guess the short answer is that I don't know, so many mixed messages.
Any expressed market opinion is my own and is not to be taken as financial advice
Westpac are already uncompetitive, so this will make it worse for them. However their subsidiary St George is better priced and has better lending policies, so it will be interesting to see what St George do, maybe as a smaller bank they don't have the same capital requirements.
St George have recently reduced their rates, and they give discount of 1.3% and up to $2000 cash to refi a loan from another bank - $1500 for investors.
I guess the short answer is that I don't know, so many mixed messages.
The reality is that mortgages as a business stream is pretty much driven by price so the banks have to work pretty damn hard to come up with a complete offer that appeals to a customer's need states and loyalty. For an industry that has the cards stacked in its favor, banks need to be working pretty damn hard in innovation just to retain customers or boost incremental customers. It's a brutal environment for many of their staff, from the front desk mules through to the honchos who need to adopt the party line to prolong the facade.
In the meantime, bit players like myself are competing directly with them for personal debt. The more they scoff, the more comfortable I am.
I left Westpac for my mortgage 12 months ago. They were not the best in the market. I think this may cause more Westpac customers to look at moving to a non-bank lender.
The return to mean is about 8% annual growth - even Sydney has a way to go to get that for the last decade, so if you are talking about a return to mean it is onward and upwards for prices for some time yet.
Almost a decade ago there was a severe economic crisis and there was only a few countries that experienced cascading falls in house prices, and these were economies which were in crazy booms. Only eejits believe the doomster nonsense that such a large event will occur again so soon and even greater fools think that such an event will cause stagnant economies to crash.
At some stage you must wake up to this silliness Ted and try to get back on with your life.
If by idiots you mean most finance press, many finance companies, and the major financial watchdogs, not to mention the central banks, then yes, rock on.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
In the meantime, bit players like myself are competing directly with them for personal debt. The more they scoff, the more comfortable I am.
But you spend all your time here waffling on with incomprehensible nonsense, and the last time we pulled you up on it you posted a link to a Github repository that didn't contain any code, just a document with a few pages of your trademark waffle and some dodgy graphs.
In light of this, how on earth do you expect us to believe you could build a piece of financial technology that will even come close to threatening one of the four government-backed Goliaths?
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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