interest rates

[Six Addict]

the RBA has just cut the official cash rate from 7% to 6%... this looks good for my personal loan... and i'm with a credit union who seems to pass on all the cuts the RBA sets... they also bump up rates accordingly but at least they also drop them...

i hope this cut eases the pain for those of you out in mortgage land

[Smitty]

...thats good news

and with oil staying around USD$85...down from $140
fuel should get cheaper even with the fall of the AUD/USD rate


unless of course the guvmint allows the fuel coys and banks
to get away with it all

[cookeetree]

Haven't heard how much ANZ is passing on yet. If they don't pass enough on, we're gonna tell 'em to piss off and go elsewhere. Bastards have been stealing our money left, right and centre.

[ty]

i hope this cut eases the pain for those of you out in mortgage land

For most it won't, unless they talk to their banks.
While the interest rate may (or may not) go down, the required monthly payment that went up with the interest rates won't go down with them. You need to call up and ask them to reduce the monthly payment.

This means that if you can afford to you're best of to leave things alone - the drop in rates means you're paying off more of your principal.
If you can't afford to do that you have to call.

ty
PS. I'm no financial guru, so take my comments with a pinch of salt and check things out yourself.

[javaman]

The events past few weeks had me interested in macroeconomics. I wished I had seen the video "money as debt" in youtube before applying for mortgage

When interest rose, the bank was sooooooo quick in passing it on. When it dropped it took whole month before they update my payment. Now they don't even promise to do so, what's with that!! I guess the logical solution is to get out of debt quicker and stop being "mortgage slave".. the interest I pay to them is like a NEW PLASMA EVERY MONTH. But at least I got my 'own' place.

It's also great that Australia is not as bad as US or EU financial wise.

[cookeetree]

...When interest rose, the bank was sooooooo quick in passing it on. When it dropped it took whole month before they update my payment...

When the last drop came about, we received a letter saying that our rate would drop in six weeks. I, like you, thought, "WTF?! It didn't take that long when the rates went UP!"

So, I looked through our filing cabinet and found the letter from the previous rate rise. Surprisingly, the new rate was also due to take effect in six weeks.

Stopped me in my tracks, I tell ya. I was just about to go postal on them!

[mike-s]

This means that if you can afford to you're best of to leave things alone - the drop in rates means you're paying off more of your principal.
If you can't afford to do that you have to call.

ty
PS. I'm no financial guru, so take my comments with a pinch of salt and check things out yourself.

My missus had a raise of 20/week with any increase. however each decrease only saw $4 taken off her rate. As you said she's not contacting the banks whatsoever for it to be reduced as it'll mean her loan is paid off that little bit faster.

Oh and Smitty, r.e. the petrol prices going down from 140 to 85, i still find it incredible they got that high in the first place, fecking foreign asses and their speculative buying.

[Saki]

well thats the thing u see, as the US goes up the oil and gold go down! So its like we are stuck in a way cause unless demand for oil drops away drastically and we strengthen to the US$ then i dont see the petrol price moving much, infact yesterday was one of the lowest point in a long time it think the $ got to
$1AUS = US$.68

so was pretty cruddy! But Euro is doing interesting things also seems to be gettign stronger so interesting times!