The biggies, except for ANZ, didn't pass the Mar-2020 emergency rate cuts to variable rate home loans but are offering to fix the home loans from 1 to 3 years in the vicinity of 2.29%. ANZ also only passed on 0.15%. Is it time to go fixed rate?
It's would be a deal breaker if you can't get a 100% unlimited offset account but for people who aren't contributing extra, could this be a good thing?
For someone at 2.84% variable that's quite a big saving though.
Fixed rates are so low now because of QE (3 year bond now at 0.25%) which means funding fixed rate loans is relatively cheaper than funding variable rate loans. Variable rates unlikely to go any lower than they are currently.
Most of my friends and coworkers don't even know who is RBA and what is a "cash rate", so the banks can do nothing at all and the public still won't be angered.
They are doing it because they can get away with it.
What I am worried is negative interest rates - prepare to pay banks that they keep your savings!
What savings… Lolz
I don't think there any reduction in any investment loans either.
It's weird though, even Athena didn't pass on rate cut. I thought that was their whole spiel/they've heavily advertised for.
Not sure I understand this one, although could just be all the lenders being too nervous to do anything atm.
yeah they're in the red atm
Athena is an absolute disgrace. I completely understand why the other banks didn't pass it on as they passed relief in form of repayment deferrals small business loans and fixed loans. Athena offered nothing and no other rate cuts or delays in repayments, unless you count their money "hacks" as something which most people in ozbargain already knows!
Rba rate cuts mean nothing if they cannot be enforced.
The government should basically threaten the banks with removing their ability to provide further mortgages in the future and lose their ability to operate as a bank.
But the banks don't just 'borrow' money from the RBA.
So why should their rate 100 percent follow the RBA rate decisions?
If they are offering 2.29 fixed, you can bet that they are expecting rates to continue dropping. There is no way they will offer fixed at lower than variable unless they think it will be to their advantage to do so.