An outbreak of loan discounting is putting fresh competitive pressure on the major banks, posing a fresh threat to profitability following a months-long ceasefire in thepoint to a resurgence in below-the-line deals, despite the big four bank bosses – notably Commonwealth Bank’s Matt Comyn – vowing they would price more rationally to protect their shrinking profit margins.
An outbreak of loan discounting is putting fresh competitive pressure on the major banks , posing a fresh threat to profitability following a months-long ceasefire in thepoint to a resurgence in below-the-line deals , despite the big four bank bosses – notably Commonwealth Bank’s Matt Comyn – vowing they would price more rationally to protect their shrinking profit margins. Pricing papers are quotes provided to brokers on behalf of their clients.
CBA offered to reduce one borrower’s rate from the 8.8 per cent reference to 5.84 per cent in late February.It comes as industry participants warn a failure to build enough homes for Australia’s growing population will put renewed upward pressure on property prices, and as surging construction costs push buyers towards existing houses rather than new builds.to a record high on Friday, extending a rally driven by expectations the Reserve Bank will cut interest rates this year. However, after a slow start to 2024 for credit growth, bank margins are likely to be sacrificed again as banks battle to grow their mortgage book
Loan Discounting Major Banks Profitability Competitive Pressure Below-The-Line Deals Mortgage Books
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