RAMS reduced rate to 4.31% from 18/10

Ljo2055 on 11/10/2013 - 19:23
Last edited 12/10/2013 - 10:27

Not a pleasant news rate going down, could not understand why ???
Anyway will be voting with my legs going 1 of November…

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RAMS Home Loan

wa01 on 12/10/2013 - 04:46

I noticed about a week ago Ubank dropped their top savings rate from 4.77 to 4.67%
Thought that was pretty odd too.

You wondered why ???
Dont know but I guess it has to do with swap-rates or futures in the finance market or something.
nickj on 12/10/2013 - 08:47

+1

You mean 4.31% rather than 5.31%
jo2055 on 12/10/2013 - 10:28

Thank you, I wish it was 5.31 … lol…
My error - corrected.
ChmpgneTasteBeerBdgt on 12/10/2013 - 11:09

My home loan is only 4.5% (not with RAMS). It would not be smart business for a lender to offer a savings account with a higher interest rate than the current home loan rate.

The only reason I got a home loan and moved my money from my interest account was because the interest rate dropped and the high income I used to make from my money per year decline.

I would assume that RAMS use your investment money at the low interest rate, to lend to their loans customers at a higher rate = profit for RAMS. If their interest rate was lower than their loans rate they would be making a loss.
jo2055 on 12/10/2013 - 11:33

Deposit money is for different sources, mostly for not home loan lending.
And as many economish predict australian "love" for real estate is very dangerous for investors and even banks … Loan as big as now make people vulnerable even with not huge interest rates hikes of 1-2 %.