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What ARE the banks doing?


What on earth are the banks doing? Westpac (along with the other big banks) just increased their profits by $150 million dollars annually (what the ???) with their decision to increase interest rates on their variable rate, interest only loans by 0.34% and even with the reduction to principal and interest, variable rate, owner-occupied loans by 0.8%!!!

They seem to be constantly raising their interest rates out of the RBA cycle.

The banks are claiming that it has to do with taxes placed on the them but why do borrowers need to wear this cost?

The Reserve Bank has held rates steady now for the past 11 months but throughout this period we have seen all the major banks asking for more money in repayments when the cost to them hasn’t changed proportionately.

In March this year Omkar Joshi a banking analyst doesn’t ‘buy the banks’ excuse that the rate rises are due to increased wholesale lending costs’ and today Paul Ryan a Sydney broker and financial literary advocate said ‘…it is too easy to blame a rise in the cost of funds or the extra demands from APRA (the banks regulatory body) as a reason to charge Australian borrowers more. The notion of increasing the rates for existing customers while still offering discounts and incentives to new customers is wrong.’

I'm suggesting that it might be time for a free review to look at smaller lenders.

Call anytime during business hours and we'll set you up with an appointment.

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