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CBA lending could trigger discounting war

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Australian Broker | 11 Feb 2011, 05:00 AM Agree 0
An economist has claimed Commonwealth Bank's plan to increase its mortgage lending could lead to a mortgage price war between the major banks
  • Perth Broker | 11 Feb 2011, 04:14 PM Agree 0
    CBA have cited that the rising cost of wholesale funds is why they have put up their rates out of cycle with the RBA. They then post a $3b half yearly profit and start discounting interest rates for high end borrowers. Is it just me or does that look a lot like CBA are charging mortgage belt battlers more just so that they can offer discounts to the more affluent end of town whilst still maintaining record profits???
  • Spinner | 11 Feb 2011, 10:01 PM Agree 0
    Like it.

    Brokers are the best medium to bring CBA the business.

    Its economies of scale. The blue collar battler can still get the 3yr discount.

    Focus on the offerring to the client. We can't control Bank profits or agenda's. ANZ's recent offer was good for many customers.

    Tea leaves tell me brokers will be the medium for banks to sustain growth.
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