Boil the frog in warm water! Be wary of rising housing mortgage costs in Australia, banks transfer huge costs to mortgage customers
"Chinatown"-Official media of Chinese Australians
AustraliaThe Australian Prudential Regulation Authority (Australian Prudential Regulation Authority) announced on Monday new measures that will reduce the mortgage lending profits of the four major banks and Macquarie.
Experts predict that banks will transfer increased costs to customers,So they will face higher borrowing costs, but it is predicted that this process will be gradual, becauseLender merchants will quietly tighten their mortgage pricing.
According to the "Fianacial Review" report, the new regulations will require the giants in these financial systems to reserve more capital funds to absorb losses in housing loans.
Experts predict that banks will transfer an additional 110 billion yuan of costs to customers, especially mortgage customers.However, they will not suddenly increase mortgage interest rates, but will gradually put pressure on them, such as removing discounts first, and then adjusting deposit interest rates.
Morningstar analyst David Ellis said that if the Reserve Bank of Australia cuts interest rates, banks may choose not to follow suit to offset part of the cost of capital. Just like Westpac, National Australia Bank and Commonwealth Bank did in May.
If the Reserve Bank of Australia does not cut interest rates, Ellis said that banks will "quietly" recover costs by reducing mortgage discounts instead of raising the interest rates they have announced.
Credit Suisse analyst Jarrod Martin said the extra cost to the four major banks and Macquarie Group due to Monday’s new rules is equivalent to raising mortgage interest rates by 20 basis points.But he said that big banks can only pursue part of the cost, and it is impossible to recover them all, because competition will restrict big banks from raising prices.
News compiled from "Fianacial Review"
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