"RBA Slashes Rates.", page-8

First 8 Last

Share
Profile

Follow
booz

2,172 Posts.

13/02/16

14:15

Post #: 17012284
Share

Originally posted by lispingduck ↑

I said if and the 'if 'was more a reference to your opinion. I'm sufficiently aware of the potential for severe impact..I just don't think it be severe.

No said the transition will be smooth, nothing that has had that much influence to an industry economy market will ever be smooth. But imo it is necessary. And with such momentum for change is here, if now is not the time then it will never ever be a time..some would say the Aust economy is already being rattled..

Will a bank sell you a product at a loss or with such a tight margin that would render a ratings downgrade because it affects their financial stability, will it be worth the risk to their share price..

it might be better for them to roll over maturing debt at a cheaper rate (should the RBA cuts rates) on existing assets and charge existing mortgages a higher rate and gouge them to maintain profits to see through the lull period for new loans. Its not like they haven't got a lot of loans on their books already and are unable to make tidy profits from existing mortgages. Think how much extra profits would arise for them from just a 1% increase in rates for existing mortgages.

Expand

Nations that are in recession don't have much demand for mortgages. And if people default en mass then banks collapse. Simple. So if I were you I'd forget about the ridiculous idea that mortgage rates in Australia are going to rise.
Upvote

Reply

Top Stories

TMK

TMK Energy brings Canadian drill partner back for one last Gurvantes XXXV pilot well

A junior miner unlocking high-grade potential in British Columbia

AII

Inside the depths of Panasqueira: A legacy carved in rock

Building value through discovery in Mexico’s silver heartland

Listen: HotCopper Wire Podcast 016 – FY25 ended up not so bad... but Trump unpause is coming