CBA raises rates 0.1 to 5.74% - the 4 pillars of monopoly?
CBA's group executive of retail banking, Ross McEwan, blamed higher funding costs for the decision, which will add around $220 a year to a $300,000 variable rate mortgage.
"We fully understand that any increase in interest rates impacts on our customers and for that reason, have continued to absorb as much of the additional funding costs as long as we could," Mr McEwan said. "Unfortunately, we have seen the bank's wholesale funding costs remain high and continue to increase as previous long term funding matures and is replaced with new funding at significantly higher cost."
CBA raises rates 0.1 to 5.74% - the 4 pillars of monopoly?
Based on the above statement by the CBA, it is hard to imagine that interest rates for home loans (say for the next 12 to 18 months) will head in any other direction than up from here on in.
US 30 year fixed mortgage rate up 0.51 from 4.78%(2/4) to 5.29%.CBA raises rates 0.1 to 5.74% - the 4 pillars of monopoly?
It may be easy for Australians to look at the subprime crisis in the US and say it can't happen here. But we did have a small-scale version of it in western Sydney, when the first-owner intake of 2001 became the negative equity club two years later when the property bubble popped. To appreciate the dumb luck involved, imagine if a global financial crisis had hit in 2004, not 2008. Our banks would have been sprung with a customer base over their collective heads. It is important to note that Sydney never did recover after the Howard grant warped the market. On the latest count, house prices in the nation's largest city are 7.3 per cent lower now compared with the end of 2003.
In every other capital, prices are at least 20 per cent higher, notwithstanding more recent drops. Melbourne is 31.4 per cent more expensive than it was five years ago, Brisbane 35.5 per cent and Perth 77.6 per cent. That's why the entry price for first-timers is an average loan approaching $300,000. When interest rates rise again, as they inevitably will, watch the newest arrivals to the market squeal. Their complaints will test the government's character.
In Australia, property ownership is seen as the principal marker of personal wealth. But self-reliance built on subsidy is surely an oxymoron.
It is important to note that Sydney never did recover after the Howard grant warped the market. On the latest count, house prices in the nation's largest city are 7.3 per cent lower now compared with the end of 2003.
no incentives or freebies were available..
Trevour...dont call me a liar
they have not been around forever
hello,
Burnsie, any commentary on the results this week with 400 auctions?
thankyou
professor robots
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