Tuesday, December 4, 2012
RBA says 'Merry Christmas", but banks say 'Humbug!"
So it looks like the RBA has done the nice thing and dropped the rate again, in what seemingly is a wonderful boost for the average mortgage owner's hip pocket, but wait.....there's a catch. The banks, well, the four majors, have not moved yet, and, as has been the practice over the last year or so, they are waiting until 'the board meets' and as a result, they will still pocket an extra few million just for their troubles. PS. please CBA, just flick us 1 mil of this, I'd be very thankful. In fact, CBA, just pay off my mortgage and I'll never say another bad thing about you ever again...promise.
Anyway, so the reality is, this early 'Christmas present' that is spoken about, in fact, will not be a Christmas present at all for many of us, as once the respective boards meet, it's then at least another week or two before it comes into effect, and the next time your will actually see your interest repayments go down will be at the end of January (all assuming the banks do lower their rates).
In other financial news, I am almost at the stage of switching to UBank. I am not overly happy with the ever growing gap between what I am being offered from CBA and UBank is starting to look tasty. The only problem is, I have absolutely NO IDEA, whether they'll lend for another investment property. This is a bad thing and a major one as to the decision of why I am holding off the switch. I think maybe once everything has been consolidated and I'm left with a tiny mortgage, it may be time to do it, but unfortunately it looks like a distance away before this comes to fruition.
Oh well, CBA it is.