Banks don't want you to see this link.
https://www.finder.com.au/historical-home-loan-interest-ratesWhy are we allowing these banks to rip us off.
Very simple maths is involved. Remember numbers don't lie
Here are few examples that will make you really pis - - ed off. Lets direct the question to the ACCC: what are they doing about this legal rip-off
Lets use the Commonwealth Bank's official numbers (similar results from all other major banks)
In:
2008_Profit margin was 37%
2010_
Profit margin 64%
2011_
Profit margin 72%
.
.
2017_
Profit margin
250% (this is not a mistake in calculations)
2018_
Profit margin
250%2019_Profit margin
437% (massive) and the year is not yet over. These numbers should warn us that the country is in REAL serious trouble.
The cash rate today sits at 1%, and banks are lending money out at 4, 5 or in some cases even 6% .
Profit margins of 500% are not out of the question. People are just copping it and don't confront their banks. In July 2008 when cash rate was 7% and variable loan rate hit about 9.6% banks profit margin was just 37%.
Economists, stockbrokers, commentators, politicians, banks will justify this (pull wool over our eyes) by stating things like: banks need to raise funds at rates above the cash rate; China and US tariff fight is responsible; or numerous other excuses. It's all a pile of b s . It comes down to pure creed and incompetence by the Boards of these banks. If world economies come tumbling down, we will be up 'ship creek'
