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Any Magin Lenders reducing rates after RBA??

Discussion in 'General Investing Discussion' started by Chris.R_WA, 3rd Sep, 2008.

  1. Chris.R_WA

    Chris.R_WA Well-Known Member

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    Perth, WA
    Hi all,

    We saw the RBA cut official rates .25% yesterday, which was quickly followed by the Big Four banks (in terms of standard variable) and 0.3% by St George.

    Haven't seen or heard anything about margin loan rates reducing any time soon?? My Suncorp rate is sitting at 10.30%.

    Any one got any news on this front?

    Cheers, Chris
     
    Last edited by a moderator: 3rd Sep, 2008
  2. Sacko

    Sacko Well-Known Member

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    Central Coast, NSW
    Thanks a good question, I'll be sending off an email to my account manager this arvo....
     
  3. ActiveTrade

    ActiveTrade Well-Known Member

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    Sydney
    I wander if ABN Amro will reduce Navra Installment warrant rate ... :confused:
     
  4. crc_error

    crc_error The Rule of 72

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    apparently margin lending rates are not coming down..
     
  5. carlosreynolds

    carlosreynolds Active Member

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    QLD
    Business Spectator - NAB's grand plan

    "Thus the relief so far – and the only real relief in prospect – applies to only about 20 per cent of the banks’ funding bases. Most, if not all, of the rest will only become more expensive over the next few years, not less. The longer the crisis persists, the higher the blended cost of funds and the longer those higher costs will persist. "

    And

    "So why did NAB commit itself in advance to passing on a 25 basis point reduction in official rates even as it argued that its blended cost of funds was set to continue to rise in the medium term?

    One suspects part of the answer is a mix of pragmatism and theatre. The banks are already being softened up, and set up by, the Government and oddly, the RBA. If they don’t pass on a September rate cut they will be held responsible and vilified.

    The pragmatic response is to say, if the banks are going to be forced by the political and public pressures into passing on a rate cut, NAB might as well salvage something in return by gaining the credit and the positive PR from being the first bank to commit to a reduction."

    So as per the above post, we may not see too much by way of interest rate cuts.

    Also refer tohttp://www.businessspectator.com.au/bs.nsf/Article/Rate-cut-wont-be-passed-on-HP8C8?OpenDocument&src=mp
     
  6. Chris.R_WA

    Chris.R_WA Well-Known Member

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    Hey guys,

    Just thought I'd update this thread. Logged onto my Suncorp account this arvo to see they had reduced my ML rate by 0.10%.

    The loan balance is relatively small compared to my property loans, but every little bit helps!!! :D

    Cheers, Chris
     
  7. ashwright

    ashwright Well-Known Member

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    Brisbane, Qld
    The rate on my bank account (attached to my margin loan) has gone down (5.25% -> 5.00%), but the margin loan itself is still quite high (has not moved.)

    I find that quite rude.
     
  8. Chris.R_WA

    Chris.R_WA Well-Known Member

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    Perth, WA
    Well...a couple of more substantial moves recently :)

    Suncorp - first move down to 9.30%, and then again last week to 8.80% :D

    Still not as much as the RBA moves...but every little bit helps the CF


    (well, not really coz it's all capped anyway - but you know what I mean)

    Cheers, Chris
     
  9. Chris C

    Chris C Well-Known Member

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    Looks like NAB is leading the pack at the moment with 8.55%, though Comsec for quite awhile was significantly lower than most, but is currently sitting at 8.70%.

    My fear is that we might not see the traditional margin rate levels of Cash Rate + 3% for many many months into the future, maybe not even in 2009 as I'm sure financial companies will be struggling well into 2009.
     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    LevEq is still at 8.95%
     
  11. Chris.R_WA

    Chris.R_WA Well-Known Member

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    Perth, WA
    Just to keep this thread up to date, Suncorp rate is now down to 7.99%.

    What's everyone elses doing? Does anyone even have margin loans anymore ??? :):)

    Chris
     
  12. Jayar

    Jayar Well-Known Member

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    Hi, Chris,

    BT = 7.69%
    StG = 7.85%

    Cheers
    Jayar
     
  13. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    LevEq SVR is still 8.25%
     
  14. cheeyeen

    cheeyeen Member

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    Melbourne, VIC
    Macquarie Prime is at 6%.