This is a question both new and existing customers have been asking me.
Yet so far we have seen announcements like the NAB pass on 0.10% and CBA passed on 0.13%. You may ask why is this the case?
There is a couple of issues to raise:
1) The Banks do dot buy money from the Reserve Bank as such. The RBA sets the cash rate but all the lenders access money to lend from their deposits and in the money market. The Banks have not raised money from the RBA for years.
2) The more the Banks lend for home loans the more Capital they have to hold to meet the Governments Capital requirements. This comes by either increasing rates, not passing on full rate cuts or writing less loans!. The Bank’s need to remain strong so we don’t see what has happened overseas.
So what we will see is Lenders passing on some of the official rate cut to help us, but keeping some for themselves to keep the shareholders and the Government happy.
Its all a juggling act!
That aside at AMFS we have some great offers available so don’t hesitate to get in touch 0450968760 or enquire online www.amfinancesolutions.com.au
