The answer is no. But you wouldn't think so looking at the media headlines. Scary, but scary sells papers and gets people tuning into the news.
The reality is that Australian banks have already bedded down long-term loans for the next ten years at extremely low rates. Most of these rates are based on the ninety-day bill rate which in fact has gone down so far this year.
The scare is that Trump is going to stimulate a lot of US development which is going to need funding. They'll have to pay increased interest rates to attract this funding from around the world and thus it would drive up rates on Australian loans.
Big problems with this theory.
So I am not fixing however if you have a lot of property and would like to hedge then it would be worthwhile talking to our Brokers about hedging a percentage of it on five years at below 4.4%. You won't get this from the banking monopoly but our Brokers can find it for you!
90 Day Rate
Latest update is that the 90 day Bank Bill cash rate is still lower than it was in January slightly. Bank funding though the term is 10 years is a margin of this rate. So the banks aren't paying more - why should they be charging you more??
Oh! That's right, they are operating a monopoly without any supervision from APRA or RBA who are supposed to be defending consumers interest.
We are sending this notice on to all Federal politicians to see if we can get some interest in the treasurer picking up the phone and harassing the banks as all treasurers used to do prior to Rudd. Remember how rates came down by all the banks everytime the RBA lowered rates?
Regards,
Kevin Young Club Founder
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