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Category: Banks and intereste rates

Posts related to Banks and intereste rates

best mortgage rates australia 2019

This column is going to be a little controversial; however, lenders are well within their rights to keep a portion of future rate cuts up their sleeve.

Furthermore, the fact that banks have to consider mortgage-holders as well as savers is an important consideration.

It is true that Australians are obsessed with housing. In no way is this better reflected by the fact that interest rate cuts are cheered because they lead to cheaper interest cost on our mortgages and interest rate rises are jeered because our repayments increase. This is notwithstanding the fact that lower interest rates typically reflect a slowing economy with low inflation and low wages growth that requires more stimulus.

On the other side, higher interest rates typically reflect stronger inflation, stronger wage growth and an economy that is overall too strong.

Looking at data from the Reserve Bank to April 2019 shows that the value of deposits with authorised deposit-taking [...]

how to get a loan approved after being declined

How to get a loan approved after getting declined

It’s one thing when the banks say no to a borrower with an “out-of-the-box” scenario as we don’t live in a perfect world along with the fact that there are events that occur in anyone’s life that one cannot control, but what happens when an everyday event that occurs & one of the clients request to borrow funds gets turned down?

Recently we examined a scenario my client had approached a major bank to apply for a loan solution as the borrower was seeking a loan of $550k to purchase another property as they had considerable funds held in their savings account, but despite his clear credit history, the bank would only lend him $325k.

 

We captured the borrower’s circumstances in one of the many banks servicing calculator, in the same way as they had been given to the bank, to see whether we would be able to [...]

Different Bank, Different Interest Rates, Why?

Products offered by the banks differ in needs and benefits for example, some banks offer more than others for similar products (e.g. a savings account with a loan product). It’s not uncommon when it comes to interest rates, to find a difference in percentage p.a. or more between banks, which may or may not add up to the lending cost.

Why are some bank interest rates higher than others?

Interest rates are some of the major sources of income for banks. A high interest rate attracts deposits, which the banks can then lend out earning revenue. Other sources of revenue come from fees for ancillary services offered e.g. fees and charges on credit cards and unsecured loans

Depending on the economy — possibly the local economy for small banks and credit unions — you’ll find that the “borrowing and lending” banks change rates as their customers’ needs change.

Organisational [...]

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