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Just in - CBA have started rate cuts on fixed loans

Discussion in 'The Pub' started by Enigma, Aug 9, 2011.

  1. So as the panic in the markets makes people weary, CBA have decided to take the lead and start rate cuts.

    link here ->CBA rate cut

    Let's just hope that people start spending up the extra money and the other big 4 start cutting to.

    Come on ANZ, show me the money!!!!

  2. Start of things to come you think Enigma? I certainly won't argue with a rate cut that's for sure. Let's hope it DOES start applying to variable rates, at least down the track anyway. I dare say ours, and other countries economies are in for some dark days ahead.

    Despite Swanny saying we will be fine.
  3. Only for new fixed rate customers. If you are on a fixed rate then you stay where you are and variable rates will track the reserve bank.

    Still it's a big turn around. Last week there was a good chance of a rise, now two drops are likely.
  4. Except last year when CBA decided to double the varible increase of the RBA on Melbourne cup day... lets see how close they stick to the RBA on the drops.
  5. Definitely, this is only the start of it. But realistically, we have not fully recovered from the 2008 downturn. Im sure they will start hitting variable, and it will only be a matter of time before the other banks follow suit on fixed loan drops. hopefully the RBA will announce an official drop on the cash rate for variable loans to be impacted.

    There is much competitiveness in this sector that I'm sure banks will do anything to get your business. No doubt people (Inc myself) am watching what is going to happen and can jump ship if I get a better deal to save hundreds per month.

    Ultimately though, we as everyday people need to spend up. As I work in import/export i see The lack of spending and retail purchasing of GDSM / FMCG taking it's toll. If rate cuts will help, then there would be more confidence in the market for investors on these type of companies.

    GDSM - general department store merchandise
    FMCG - fast moving consumer goods.

  6. Rob, I have been watching the markets for the past few days now, after USA's AAA+ drop, and it's just been a landslide since. I can't see it improving anytime soon either. Add to that the debt crisis in Europe and I dare say Australia CAN'T stay unscathed.

    I guess it's fortunate for myself and my wife both working in the government sector (job security) so another GFC won't really affect us. But in saying that, we don't really save any money each week, we spend. My dad once said to me, "What's the point of being the richest person in the cemetery?"

    Which I reckon is fair enough. :D
  7. That sir, is an awesome quote! Signature worthy.. Cannot agree more with that. It is always good to have a store available for a 'rainy day' with people saying you should have 1-2x your normal monthly income. But any more than that? Unless you saving for something like a GSXR 1000 :D either invest or spend the rest. We all do our part in ensuring the economy keeps turning.

  8. I guess my problem is IF I had 1-2x my monthly salary tucked away in an account I'm sure I would find something I just 'had' to spend it on. I'm not sure what that's called, there must be some disease for it, surely!

    As life has proved to me, you never know when your number is up, so enjoy what you have (hence that quote you liked).
  9. And the snowball effect has started, westpac announced a 20 basis point cut on their fixed loan products.

    With the vagueness of these articles, can only assume this will impact existing and new customers.

    Come on mr variable. Show you have some balls!
  10. Fixed loan existing customers will never be impacted, their rates are by definition fixed.
  11. Good point - *smacks head*

    I've never owned a fixed product so wouldn't know.
  12. Spam emails have started again today for CBA, received two so far, and I'm not a customer of CBA.
  13. Fixed rates are generally the precursor for variable rates. In 2008 the fixed rates went up before the variable rates did, this is the banks locking in people before rates go up. Therefore, the banks assume the variable rate will go down in the next few months.

    The RBA is out of touch with reality. I said 2 months ago that they should be looking to put rates down instead of up. The economy has not vern in any decent shape for a while now. The RBA and Govt are delusional.

    Anybody who thinks the banks are going to pass on all the interest rare cuts is also delusional. These are the same banks that put rates up on their own. Greedy fcukers.
  14. I paid out my mortgage last year... Should have kept the cash and bought a bunch of shares now. Why do I never get this shit right?
  15. You don't have redraw?
  16. Nahh, I got excited about getting rid of it, knowing damn well it was a bad idea. The idea of being free from the mortgage beat me. Lucky my bank manager got to me before I paid the exit fees or whatever it is to release the bank from the deeds, because apparently if they are still listed on the deed, you can borrow up to 100% of an investment property with no mortgage insurance.
  17. Buy shares? Now? Are you for real? Surely the last few days has put everyone off buying shares for a while. The best sound investment at the moment is a term deposit. However, this is only good whilst rates are up.

    Some of the banks are offering 6.5% on term deposits. Given the uncertainty around falling property prices and the ever increasing uncertainty around the stock market, I reckon a certain return on your money would be the best bet.
  18. It's the best time to buy shares when they have plummeted, usually due to a panic, as things steady they slowly go up, remember the motto "buy low sell high". Just make sure you buy shares in decent companies and not junk companies.
    6.5% on a term deposit is good too.