Bendigo and Adelaide Bank says one in five customers whose special, low fixed rates have expired over the past three months have departed to another bank.
One in five Bendigo and Adelaide Bank customers refinancing fixed-rate home loans over the past few months left for another bank, forcing the regional lender to offer borrowers discounts to entice them to stay.
The number of customers coming off fixed rates will increase through to the first half of next calendar year. But as they reset at much higher market rates, given the Reserve Bank continues to lift the cash rate, new discounted loans would still be written at higher margins than the rock-bottom fixed rate offers, he said.
Bendigo will proactively contact the 43 per cent of its customers on fixed rates via email, mail outs and phone calls to encourage them to stay. Discounts to standard variable interest rates are typically offered to new customers but not existing customers who make up the back book –Some Bendigo customers will be pointed to its new digital mortgage option developed under its Express Home Loan brand.
Bendigo shares continued to slide on Tuesday, losing another 4.1 per cent at $9.48 near the close after sliding by 8 per cent on Monday. Analysts raised concerns about a decision to defer the benefits of rate rises by changing the structure of the way the bank’s capital is invested, and a bigger-than-expected margin drag from the way revenue is shared with its Community Bank.Morgan Stanley said after its 11 per cent home loan growth in 2022, it expected growth of 3.5 per cent in 2023 and 1.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Westpac update shows pristine credit qualityThe bank’s quarterly update shows bad debts in its mortgage book fell while capital levels dropped due to accounting rules relating to higher interest rates.
Read more »
Pandemic measure set to cause interest rate pain for thousands of CBA customersA decision by the nation’s largest lender to help ease financial pressure on home buyers two years ago is going to bite the same people in the coming months | swrighteconomy
Read more »
Pandemic measure set to cause interest rate pain for thousands of CBA customersA decision by the nation’s largest lender to help ease financial pressure on home buyers two years ago is going to bite the same people in the coming months. | By Shane Wright swrighteconomy inflation
Read more »
Pandemic measure set to cause interest rate pain for thousands of CBA customersA decision by the nation’s largest lender to help ease financial pressure on home buyers two years ago is going to bite the same people in the coming months.
Read more »
Bendigo feels crunch on margins as lending competition bitesBendigo and Adelaide Bank shares fell sharply on Monday, after it revealed a sharp decline in its net interest margin.
Read more »
AFL strives for record $3b broadcast dealFoxtel and Seven West Media are the favourites to retain the rights, but the AFL is still considering other options in a bid to push the price higher.
Read more »