As Mr Mortgage predicted last month, the Central Bank not to raise interest rates in October. Now he is saying it is time to move from the big four banks , and to a non- bank mortgage securitization , if you want to lower mortgage rates over the next twelve months. Here is why .
The big banks are eager to raise mortgage rates above the official cash rate
The big banks are set to inflate rates up on you under the cover of an increase in the official rate . So this means that you would get two increases in mortgage rates at the same time . Can you afford that? I think not.
Central bank interest rates to "talk to " deceive financial markets and banks
The Reserve Bank likes to deceive financial markets from time to time , and did so in October. He made noises that sounded like a coming rate increase the Australian dollar rose, and the reasons for the rate hike weighed out for the reasons to celebrate in interest rates go up .
Indeed, the RBA board figures if speaking of a rate hike can do the work of an increase in the current rate , the fact that the task of controlling inflation and keeping unemployment low , so no rate increase necessary. Am I the only one who noticed this ? No, but the vast majority of economic experts believe their own spin .
Talk Reserve Bank interest rate to make a profit without the pain of increased mortgage payments.
The other benefit that the RBA is in the use of talk- types is, you still have the card interest rate to play if buyers and consumers stop listening to the messenger of death. So the Reserve Bank has extended the value of a rate hike and pain reduction of the real thing . I like .
In the chess game of the threat to do something can be more powerful than reality to make the move . This is the game smarter than the Reserve Bank is to play wherever they can, as they are persuading people to do what you want , without actually inflicting the pain of a rise in mortgage rates .
Why you should move your home loan away from the big banks, if you are concerned about rising mortgage rates .
Based on their own assumptions , major banks suffered deep losses betting the wrong way . I'm talking about millions of dollars in a couple of weeks of each banks bottom line .
Major banks tippied the RBA could raise the cash rate by 25 basis points to 4.75 percent.
Not only that , they have been raising hundreds of millions of dollars in short-term funds on the basis of prices to factor in higher effective rate . Hmmm ? I wonder where they will get the money to fill that hole ?
These banks are believed to be sitting on this great loss and are now looking for someone to milk . Do not let that be you . Move your loan account now .
Mortgage rates : Lessons learned.
Major banks will have to raise interest rates on mortgages , without the Reserve Bank interest rates move sooner or later, and the RBA knows this.
The RBA can now sit back and see major banks squirm , knowing they are under pressure to increase interest rates cycle themselves with the central bank . This tension will create more uncertainty of a rate hike in the coming months and by then the banks will have to move mortgage rates even if the RBA sits on his hands .
Result ? The RBA may leave interest rates is that the big banks will do their job for them. That is, if the cooling of the real estate markets and moderate consumption before the holidays are your goals .
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