The FBAA's White says it is "bitterly disappointing" that the major banks have not passed on the full interest rate cut... Non-major rejoins investment lending market...
FBAA urges banks to pass on full OCR cut
The Finance Brokers Association of Australia's White has expressed his disappointment in all the big four banks failing to pass on yesterday's cash rate cut in full.
The Reserve Bank lowered the official rate to 1.5% per cent – their lowest ever.
“Banks must protect shareholders but they also must look after their customers. It was disheartening to find the CBA and NAB not passing on the full reduction which most banks passed on during the last official rate reduction in May.”
CBA announced it will lower its standard variable rate mortgages by 13 basis points; Westpac dropped its SVR by 14 basis points; NAB will drop its standard variable business rate by 10 basis points, effective from 19 August; and ANZ will lower its SVR by 12 basis poitns by 12 August.
White questioned the lenders' decisions not to make the rate changes effective sooner.
“When rates rise the lenders lift their variable rates immediately! Again it is the customer who is being treated poorly.”
Non-major rejoins investment lending market
Investors now have another option for finance with non-major lender Teachers Mutual Bank announcing it is returning to the investment lending market.
Effective from the start of this week, Teachers Mutual and its subsidiary UniBank are now accepting mortgage applications from residential investors after the lender closed its investor portfolio earlier this year to allow it to come inline with restrictions mandated by the Australian Prudential Regulation Authority (APRA).
Mark Middleton, national manager of third party distribution at Teachers Mutual Bank said the non-major has successfully bought the growth of its investment loan book back to a level that is acceptable to APRA.
“Over the past three months we have closely managed our investment lending portfolio which has seen growth slow in line with the bank’s expectations and to meet APRA’s annual 10% guideline,” Middleton said.
“We are pleased to be in a position to return to the market. Our focus now will be working closely with our members and third party distribution channel to address their needs while still adhering to our regulatory responsibilities,” he said.
(Your Investment Property)
The Finance Brokers Association of Australia's White has expressed his disappointment in all the big four banks failing to pass on yesterday's cash rate cut in full.
The Reserve Bank lowered the official rate to 1.5% per cent – their lowest ever.
“Banks must protect shareholders but they also must look after their customers. It was disheartening to find the CBA and NAB not passing on the full reduction which most banks passed on during the last official rate reduction in May.”
CBA announced it will lower its standard variable rate mortgages by 13 basis points; Westpac dropped its SVR by 14 basis points; NAB will drop its standard variable business rate by 10 basis points, effective from 19 August; and ANZ will lower its SVR by 12 basis poitns by 12 August.
White questioned the lenders' decisions not to make the rate changes effective sooner.
“When rates rise the lenders lift their variable rates immediately! Again it is the customer who is being treated poorly.”
Non-major rejoins investment lending market
Investors now have another option for finance with non-major lender Teachers Mutual Bank announcing it is returning to the investment lending market.
Effective from the start of this week, Teachers Mutual and its subsidiary UniBank are now accepting mortgage applications from residential investors after the lender closed its investor portfolio earlier this year to allow it to come inline with restrictions mandated by the Australian Prudential Regulation Authority (APRA).
Mark Middleton, national manager of third party distribution at Teachers Mutual Bank said the non-major has successfully bought the growth of its investment loan book back to a level that is acceptable to APRA.
“Over the past three months we have closely managed our investment lending portfolio which has seen growth slow in line with the bank’s expectations and to meet APRA’s annual 10% guideline,” Middleton said.
“We are pleased to be in a position to return to the market. Our focus now will be working closely with our members and third party distribution channel to address their needs while still adhering to our regulatory responsibilities,” he said.
(Your Investment Property)
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