Bank of Queensland (BOQ) gave us the first indication that the Banks will not pass on the full interest rate cut after the Reserve Bank of Australia cut interest rates by 0.5%. BOQ announced yesterday that they will only be passing on 0.35% of the 0.50% stating the usually higher costs of funding. ANZ will make their Read More
We all know the news that all banks and smaller lenders have passed on the full 0.25% rate cut. The question is, when will they pass it on? As mentioned in an earlier post lenders are quick to pass on interest rate increases but slow to pass on interest rate decreases. Below is a table comparing Read More
Yesterday saw ANZ to be the first of the big banks to pass on the full interest rate cut to its variable rate customers. Later that day NAB, ING Direct and Commonwealth Bank followed. Westpac waited until the evening to announce their intention. I expect all the second tier banks and other lenders to follow. Read More
Since the last interest rate cut, home loan interest rates have come down. Fixed interest rates are also falling and for the first time in 2 years we see a 2 year fixed rate fall below 6%. Below are some of the better interest rates from various lenders around Australia that include ANZ, NAB, Westpac, Read More
Having been in the mortgage industry for just over 6 years I have seen home loan interest rates rise and fall. One of the most common observations is that banks are slower to pass on a rate cut compared to when interest rates rise. The table below shows that there is a 24 day difference between banks Read More
When Commonwealth Bank came out with a 0.45% interest rate increase, 0.20% higher than the Reserve Bank interest rate increase, the media, politicians and the public were enraged. Having taken the brunt of the bad publicity most of the other banks and smaller lenders have also followed suit. As each lender announces their interest rate Read More