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Thursday, 24-Oct-2013 08:26 Email | Share | Bookmark
Small Lenders Take Initiative On Rates

Treasurer Wayne Swan said the cuts were a sign that the federal government's banking competition reforms are working. Financial comparison website RateCity said Holiday Coast Credit Union cut several of its loan products by 20 basis points, BMC Mortgage reduced several loans by 10 basis points, while IMB trimmed one of its loans by five basis points. "While there have been several rate increases out of cycle, we've never seen lenders drop variable home loan rates while the cash rate remains stable," RateCity spokesperson Michelle Hutchison said in a statement. Since the government announced its comprehensive package of banking reforms in December 2010 to boost competition, smaller banks have captured an estimated $21 billion in home-lending business from the big banks. "We've made it easier for consumers to walk down the road and get a better deal if their bank doesn't do the right thing by them," a spokesman for Mr Swan told AAP on Thursday. Ms Hutchison believes other lenders have room to move. On average they have kept 42 basis points of the Reserve Bank of Australia's (RBA) 175 basis points of official rate cuts since November 2011 from variable home loan borrowers. <br>For low doc loans Sydney the original version including any supplementary images or video, visit

Bank wars: what’s in it for small business?

The deal will refinance an existing $6 billion loan that was put in place in November 2010, the sources said. Rio Tinto could not immediately be reached for comment. Proceeds from the existing $6 billion loan refinanced remaining debt from Rio Tinto's $40 billion acquisition of Canadian mining company Alcan, repaid some maturing bilateral loans and also was used for general corporate purposes. That loan was increased from $5 billion after a successful syndication. Pricing on the existing loan is based on a ratings grid. Pricing initially opened at LIB+65 basis points for a current rating of BBB+ from Standard & Poor's, according to Thomson Reuters LPC data. Deutsche Bank and Royal Bank of Scotland were global coordinators on the deal. Rio Tinto is listed in London and New York, and Rio Tinto Ltd is listed on the Australian Securities Exchange. <br>For the original version including any supplementary images or video, visit

RLPC: Rio Tinto to launch $8 billion refinancing Wednesday

With whispers that the onslaught has only just begun, this space could soon get very interesting. So far, unless you are refinancing your home loan, the benefit is not obvious, but Westpac has already indicated its out to woo business customers and, as confidence increases, is looking to amp up the competition for business credit and business loans. There is a link between home loans and business transaction accounts, however. Business people tend to keep the same provider for both home loan and business transaction accounts so the NAB grab at the home loan market is also an indirect grab for the business customer. As things pick up for business small business owners are less likely to self fund any cashflow shortfalls from their mortgage, instead opting for a line of business credit, overdraw facility on their business account, or business loan. No wonder the Commonwealth Bank head of retail banking, Mr Ross McEwan, has come out recently to publicly state that CBA is planning to hold its position as the number one bank in the Australian mortgage market, while Westpac is trying to make it easier for mortgagees to switch. So if youre a business owner, and youre in the market for a mortgage, dont be afraid to haggle. <br>For the original version including any supplementary images or video, visit

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