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Beware of 'phantom rates' warns broker head

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Julia Corderoy | 07 Mar 2016, 07:53 AM Agree 0
Home loan consumers should be cautious of “phantom rates”, the head of a major mortgage group has warned
  • Sound like a rip-off | 07 Mar 2016, 08:37 AM Agree 0
    Maybe the ACCC should flag this as an area to look into.
  • Roddyrodrod | 07 Mar 2016, 08:43 AM Agree 0
    It's called bait advertising - illegal under the Trade Practices Act. The mob promoting the 3.69% will then take 3 months to get an approval, by which time they will have moved rates 3-4 times.
  • Broker | 07 Mar 2016, 10:17 AM Agree 0
    ACCC- Not possible they're too busy looking into fuel pricing!
  • Observer | 07 Mar 2016, 12:09 PM Agree 0
    Interesting the latest RMBS issue by CBA last week was priced at 140BPS over swap, whereas their previous two issues last year were done at 80 and 90 points over BBSW. Essentially you have a "real" rise in cost of funds 50-60BPS outside the RBA environment. Natural outcome is to plan and cover these costs through higher delivery rates. Other lenders especially smaller ones will need to follow suit and will most certainly pay a premium above that afforded to CBA. This will continue to put upward pressure on interest rates.
  • steve reid | 07 Mar 2016, 04:07 PM Agree 0
    There is a number of lenders doing, this including the main four.

    ING just increased there rates by .57, what the hell is going ON?
    What business can increase their margin when it gets tight?

    John is right, this is false advertising. The margins should not move.
    You can't tell me NAB increases their interest-only pricing by .29?

    Come on.
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