An outbreak of loan discounting is putting fresh competitive pressure on the major banks, posing a fresh threat to profitability following a months-long ceasefire in thepoint to a resurgence in below-the-line deals, despite the big four bank bosses – notably Commonwealth Bank’s Matt Comyn – vowing they would price more rationally to protect their shrinking profit margins. Pricing papers are quotes provided to brokers on behalf of their clients.
CBA offered to reduce one borrower’s rate from the 8.8 per cent reference to 5.84 per cent in late February.It comes as industry participants warn a failure to build enough homes for Australia’s growing population will put renewed upward pressure on property prices, and as surging construction costs push buyers towards existing houses rather than new builds.to a record high on Friday, extending a rally driven by expectations the Reserve Bank will cut interest rates this year. However, after a slow start to 2024 for credit growth, bank margins are likely to be sacrificed again as banks battle to grow their mortgage book
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Commonwealth Bank's cash profit falls 3% in first halfCommonwealth Bank's cash profit for the first half of the financial year dropped by 3% to $5 billion due to intense competition in the mortgage market. The bank's CEO, Matt Comyn, stated that 2024 will be a challenging year for the bank and the economy due to inflation and slowing demand. Despite the lower profit, the bank remains strong and will continue to invest in products and services.
Source: FinancialReview - 🏆 2. / 90 Read more »
RBA interest rates: Commonwealth Bank CEO Matt Comyn says rate cuts may wait until 2025 after US inflation shockCommonwealth Bank boss Matt Comyn says the Reserve Bank could delay the arrival of interest rate cuts due to “persistent” inflation, compounding cost of living pressures for borrowers.
Source: FinancialReview - 🏆 2. / 90 Read more »
Major Changes Recommended for University Loan Repayment SchemeAn independent review into universities has recommended major changes to the university loan repayment scheme. Education Minister Jason Clare hinted at annual repayment savings of up to $1000 for some Australians. The current scheme allows students to defer the costs of their studies until they earn a specific salary, with payments deducted from each salary payment. The report addresses the issue of indexation causing the owed amount to increase before payments are deducted.
Source: 7NewsSydney - 🏆 16. / 63 Read more »