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Monday May 21, 2012

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Why we pay higher mortgage rates

Posted by: 2UE | 8 February, 2012 - 9:49 AM
What's the average price of Sydney suburbia?

The big four banks are looking to raise their rates upwards, independently of the Reserve Bank. David Oldfield reveals many economists are claiming there will be a backlash. Why are we paying so much for our mortgages?

 

 

The Coalition has again accused Treasurer Wayne Swan of having no clout with Australia's major banks. The big lenders may lift interest rates, even though the Reserve Bank has kept the official cash rate on hold.

The banks say they're struggling to absorb higher funding costs, despite posting multi-billion-dollar profits. Opposition leader Tony Abbott says during previous Coalition Government's the banks followed the lead of the Reserve.


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Blog comments Your Say

  • Is there a connection between the Rainbow Serpent and the Serpent of the other cultures in the world. Find the answers out at Redfern Community centre this Monday at 6.30 pm at Redfern Community centre. Hugo St Sydney

    Keith King Friday 10 February, 2012 - 10:24 AM

  • Mortgage rates are simply a reflection of abject greed.ANd that is on the part of the lenders. As well, every house, unit or so called 'apartment' I have looked at is some $100,000 plus overpriced. I would like to see it all collapse like real estate prices did in good ole USA. I predict this will not be far off as everything even a damned block of land is overpriced by $100,000 plus plus. Rest my case.

    Azzi A Aduk Wednesday 8 February, 2012 - 5:43 PM

  • @ peter

    Peter the rest of the world dropped mortgage rates to around 1% where as here in Australia they kept them much, much, much higher, really if you removed the minerals that we sell to China. Then Our over inflated dollar would drop to $0.50. Then our mortgages would also drop to about 1%.

    Hey Peter Where did you get a 4.5% mortgage rate, I've been trying remortgage my house, and 7% is around the best.

    also If our governments started getting proper mineral royalties back to Australia, eg 60% of profits are sent overboard we would have infrastructure.
    Jeff

    jeff Wednesday 8 February, 2012 - 2:21 PM

  • My rate 8 years ago was 8% now its 4.5% get over it, there still low

    Peter Wednesday 8 February, 2012 - 2:04 PM

  • The reason why we are paying so high in mortgage rates is simple, Its to do with the whole Capitalist Machine that our two major Governments love, its called taxes, If people pay more to the banks then the Banks pay more in taxes, If people pay more in rent, then the owners pay more in taxes, Here's an example, the two video stores in Quakers hill kept getting the rent increased drastically compared to the amount of business they were doing, around 5yrs ago the main video store closed because they couldn't afford $20,000 a month in a small strip mall with 3 other stores, but could you imagine how much tax that property owner must of been paying? Then they raised the rent to $20,000 a month on the other video store, they went out of business also.
    It just doesn't work!! Now we have to drive to Blacktown to rent a movie, not a very green carbon friendly, drive 48km (12kmX4) just for a video.
    Then we thieves like telstra charging $5-6 for a online video each, Where as netflix charges $8 a month and you get unlimited movies and tv shows. But of course netflix is only for, United States, Canada, UK, Ireland. Funny how Australia is left out. I would once like to see a government actually regulate the following and not just say they are going too.
    Regulate Banks Rates, Cellphones fees, Foxtel Pricing, Wireless Internet fees, Watermarks on tv screens should be much smaller, less transparent and only located on the bottom right of the screen, not on top of the screen where it covers peoples faces!!! its just rude and very distracting.

    Jeff

    jeff Wednesday 8 February, 2012 - 12:23 PM

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