Hi All,
A lot of noise is coming today from the Reserve Bank of Australia about Australian Interest Rates. The central bank said that it was in the interest of the country's retail banks to lower lending rates when the official cash rate is lowered.
The comments were made at a parliament meeting between lawmakers and the Deputy Governor of the Reserve Bank of Australia (RBA) Ric Battelino and Assistant Governor Philip Lowe.
This is response to the Australian Banks stating that mortgage rates need to raise due to the cost of funding.
Personally i would rather sell something for £1.10 and make £0.10 than sell something for £1.20 and not sell it. Banks need to understand that times are tough and unless that want people to default they are better off cutting rates and making life easier for all.
Than maybe I can finally sell my House!
Bye For Now
IMS Foreign Exchange
Showing posts with label australian mortgages. Show all posts
Showing posts with label australian mortgages. Show all posts
Thursday, August 14, 2008
Tuesday, August 5, 2008
Australian Banks Gobble Mortgage Loans Pie
Australian Banks Gooble Mortgage Loans Pie
By Alex Tilbury August 04, 2008 08:39am
Mortgage Calculator
Australian Mortgage Customers be left at the mercy of the big banks as the only remaining mortgage lenders because the residential mortgage-backed security market is in danger of collapsing.
Securitisation has helped deliver cheaper home loans and a wider choice of mortgage products over the last two decades. But as non-bank lenders leave the market, the competitive pressures that have kept mortgage rates low may also disappear.
"The RMBS market is dying on the vine,'' says Greg Medcraft, chief executive of the Australian Securitisation Forum.
"The RMBS market has been an important driver of competition and innovation in the mortgage market.'' Confidence among institutional lenders, who buy the RMBS bonds that fund the mortgages that hundreds of thousands of Australians use to buy their homes, is so low that only $1.9 billion in RMBS bonds were bought in the first six months of this year compared with $47 billion during the same period last year.
This low volume of housing bonds issuance is transforming the mortgage market as non-bank lenders get crowded out by the big banks and evaporating competition.
Mr Medcraft says the five largest banks have increased their home mortgage market share dramatically in recent months.
After steadily falling from 65 to 58 per cent between 2004 and 2007, the RMBS drought has seen banks reclaim 10 per cent of the market, returning them to the glory days when they dominated it. Non-bank lenders entering the home mortgages market saw spreads, the gap between actual mortgage rates and the official Reserve Bank rate, drop two-thirds from nearly 5 per cent to now less than 2 per cent.
If you are looking for Mortgages in Australia contact IMS Foreign Exchange
Pounds to Australian Dollars currently 2.1200
By Alex Tilbury August 04, 2008 08:39am
Mortgage Calculator
Australian Mortgage Customers be left at the mercy of the big banks as the only remaining mortgage lenders because the residential mortgage-backed security market is in danger of collapsing.
Securitisation has helped deliver cheaper home loans and a wider choice of mortgage products over the last two decades. But as non-bank lenders leave the market, the competitive pressures that have kept mortgage rates low may also disappear.
"The RMBS market is dying on the vine,'' says Greg Medcraft, chief executive of the Australian Securitisation Forum.
"The RMBS market has been an important driver of competition and innovation in the mortgage market.'' Confidence among institutional lenders, who buy the RMBS bonds that fund the mortgages that hundreds of thousands of Australians use to buy their homes, is so low that only $1.9 billion in RMBS bonds were bought in the first six months of this year compared with $47 billion during the same period last year.
This low volume of housing bonds issuance is transforming the mortgage market as non-bank lenders get crowded out by the big banks and evaporating competition.
Mr Medcraft says the five largest banks have increased their home mortgage market share dramatically in recent months.
After steadily falling from 65 to 58 per cent between 2004 and 2007, the RMBS drought has seen banks reclaim 10 per cent of the market, returning them to the glory days when they dominated it. Non-bank lenders entering the home mortgages market saw spreads, the gap between actual mortgage rates and the official Reserve Bank rate, drop two-thirds from nearly 5 per cent to now less than 2 per cent.
If you are looking for Mortgages in Australia contact IMS Foreign Exchange
Pounds to Australian Dollars currently 2.1200
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