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Lender undercuts majors by more than 50bps

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Australian Broker | 08 May 2012, 03:15 AM Agree 0
Another lender has announced rate cuts, pipping the big four by more than 50bps
  • A Broker | 08 May 2012, 09:54 AM Agree 0
    Nice spin on behalf of ME Bank. Give less back to borrowers in terms of rate cut whilst making it look like they've given more. Lovely.
  • PeterT | 08 May 2012, 11:03 AM Agree 0
    Pathetic. Almost every other lender has a product available to almost everyone with rates at least 20 points lower than ME.
  • Damien | 08 May 2012, 01:09 PM Agree 0
    Put simply this the result of collusion and little to do with the cost of funds, so each RBA cut now just increases the banks bottom line, the banks are laughing all the way to their own banks!

    Why is it that in 99% of businesses, when the cost of funds / goods go up , profit generally declines, but when cost of funds are allegedly going through the roof, the banks profit increases, what an astonishing business model…..

    This is consistent with the general “big business behaviour” in Australia,

    Q- How much does this product cost?

    A- As much as we can gauge out of you before you can’t cope any longer, get ready for a bumpy ride folks !!!
  • Tim | 08 May 2012, 03:07 PM Agree 0
    As Peter T correctly states all the majors and also the minor banks have rates below 6.44% available to any borrower with a decent credit rating.
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