mm Tina Fotopoulos
Tina has worked in a customer service and sales environment for over 25 years, both overseas and in Sydney and…
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Banks, Mortgages and Property

February 20, 2015 by Tina Fotopoulos

dollars in bank

Which Bank?

Hope those of you with a mortgage currently have finally had last month's 0.25% interest rate
passed on by whichever lender you are currently with.

It amazes me how "difficult" it is for banks to do this immediately with their current loyal clientele with some poor buggers having to wait as long as two and a half weeks.

If you are a new customer however and yet to formalise your loan
(ie. are about to purchase or re-finance) it's magically "no problem" to pass on the new rate instantly.

I have read that the value in dollars saved to the bank for each day they withhold the decreased amount is as high as $2 million - chicken feed for an organisation that records billion dollar profits quarterly but still a very significant sum in isolation.

Amazingly when the Federal Reserve raises rates, hey presto the banks miraculously are able to coordinate them being passed on to their customers straight away.

That's enough bank bashing for one day, hope I don't sound too bitter and twisted. I should also point out that some of the banks did actually decrease their rates by more than the 0.25%, most notably Westpac who went down 0.28%. At least that's something.

Hopefully that trend will continue but I won't be holding my breath.