CBA cuts fixed mortgage rate. Silent on variable

Hmmm…

CBA has cut home loan rates by 70 basis points to an all time low of 2.29 per cent for 1, 2 and 3 year fixed home loan customers.

Alongside that, the bank said it was launching a new term deposit rate of 1.7pc, an increase of 60bps.

That looks like cover for zero pass through on variable rates which, frankly, is the right thing to do. They need the spread and it won’t do much for households without jobs.

David Llewellyn-Smith
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Comments

  1. DLS, can you please provide your advice for those of us with a mortgage – stay variable?

    • The Council of Financial Regulators has been developing the plan, which may also involve some leniency around prudential requirements.

      Of course it may! Why bother with prudential regulation when you can take advantage of a good crisis and relieve yourself of the one responsibility you were tasked with. They still get paid right?

    • Just that small issue of not having a job, but I am sure that APRA can remove the MP … oh wait there was none anyway, NINJA loans to the moon

    • 1 has to wonder if the punch will be removed when Corona virus is no longer a big deal?

      • Mining BoganMEMBER

        You should know. You’re the one that broke Australia.

        Hey, you should get a little trophy like Scummo got for stopping the boats. A carving of Australia with “I broke this” on it.

          • The Traveling Wilbur

            There is no dodging this Gav.

            We told you it would happen.
            You told us it would happen.
            You did.
            And it happenend.
            And we told you it happened.
            It’s all on the net. Forever.

          • The only comfort I take is that my comments on here will later serve as a historical timeline of how events unfolded for future documentaries on the collapse of society as we know it. I am glad I managed to play such a pivotal role.

  2. Talking an EGM at a big four today. Said the bank is basically down to keeping the lights on. IT is so shit working from home doesn’t work. Yeah, they’ll be busy lending large no problem

  3. Saving rates going up, Banks are sweating for deposits, explains why AUD has collapsed, foreign funds must be leaving at a dramatic rate.

    • I noticed this as well. A little while ago one of my savings accounts went up by 0.55%. Will see if others follow suit.

  4. Man, westpac a whisker from 2008 lows then its back to 2003 levels.
    Massive head and shoulders. Think we will bounce at this level? It very oversold. Tempted

    • Wait I thought your name was Pat?

      I reckon any money protected by the $250K guarantee is safe, yes.

      • … if it gets enacted as a last resort… in the mean time… bail-in is the first thing on the cards!

        • Ajaydee73MEMBER

          Bail in is the opposite of what they will do. They’re more likely to pump more cash into everyone’s accounts.