Posted by Paul Ryan on 08-March-2012, 01:51 PM
Co founder of Wizard Home Loans in 1996 and in 2007 launched new non bank lending business Opportune Home Loans. Having 20 years experience in home loan lending there are two key components to ensure all consumers receive a better home loans experience, a healthy mortgage market and greater education for consumers to understand more about their mortgage and financial stability.
Last week’s intouch TV: Don’t fall for the big banks
crying poor” continues to ring true as it comes to light that the big banks
have experienced substantial reductions in their cost of funding over the past
Leading economists have reported a reduction of up to
0.50% in the banks cost of funding yet it was the higher cost of funding touted
as the reason why they increased interest rates out of cycle In February as well
as highlight the need for dramatic job cuts.
Now today we receive the news from Westpac CEO Gail Kelly
warning consumers to expect more pain in rate movements as she expects “smaller
rate moves more often.”
So with record profits been splashed all over the financial
papers it becomes a bitter pill to swallow when we understand an increase in
rates by 0.10% will deliver a further estimated quarter of billion dollars in profits
for Westpac alone.
The big question that needs to be asked is why are the
banks PR spin doctors so quite given the lower cost of funding and their
enhanced ability to provide customers a break by reducing home loan rates.
I wonder if Gail Kelly statement of “smaller rate moves more often” means they will lower rates out of cycle with the RBA. Now that would be giving something back to the community.