CBA hikes rates on specufestors again

I’m losing track of how much tightening we’ve seen from the CBA in the past two months but there’s more today with fixed rates on interest-only loans rising by 25 basis points, specufestor loans up 25 basis points, and specufestor interest only up 25-50 basis points.

The changes appear to be for new fixed loans only so is directed at front book slowing not back book re-pricing.

Comments

    • Bear in mind that ‘new loans’ includes the funding for nearly every OTP contract signed in the last 3 years that is yet to settle. The effect of this on OTP defaults will be well worth keeping an eye on.

  1. Damn.. I should have taken up that juicy position at CBA last year!.. Their yearly bonuses are all on track and may be some more, exceeding expectations!

    • depends on the suburbs. our international (can’t mention their nationality lest yee be called a rashist) friends paying in cash in certain suburbs couldnt even tell you who are banks are let alone what their rates are.

      • simpeltonMEMBER

        They are probably pr holders or citizens even if they speak a foreign language and 99% of them have big loans and they count every dollar as well so will be well versed with rates. Rates going up is not going to stop them (at this stage) but will slow them down ever so slightly. As long as the capital gain out weights the interest payment, they aren’t going to be deterred as it’s a trade, speculative ofcourse but they don’t see it that way. Australian property is a sure bet don’t you know.
        Once values start going south, that’s when the panic will begin, we’re just about there. Once the Trump reflation non sense is up, it’s game over.