1 00:00:00,120 --> 00:00:02,840 Speaker 1: So the jaw boning Post Reserve Bank CASHWEP mover has begun. 2 00:00:02,880 --> 00:00:05,520 Speaker 1: The Finance Ministy yesterday heaping pressure on the retail banks 3 00:00:05,519 --> 00:00:07,240 Speaker 1: to pass on those cuts in full. Well are they 4 00:00:07,240 --> 00:00:10,080 Speaker 1: Bruce Patton's Loan Market Mortgage Advisor and as with us, Bruce, 5 00:00:10,160 --> 00:00:14,360 Speaker 1: morning to you, good morning. Have they No? 6 00:00:14,360 --> 00:00:17,239 Speaker 2: No, not at all. They're like a bunch of possums 7 00:00:17,239 --> 00:00:19,160 Speaker 2: in the headlights at the moment. They're waiting for someone 8 00:00:19,160 --> 00:00:21,880 Speaker 2: to make the first move. They didn't all pass on 9 00:00:22,000 --> 00:00:25,279 Speaker 2: the full floating discount, and they're holding some really good 10 00:00:25,280 --> 00:00:27,639 Speaker 2: margins at the moment. We can see that we're given 11 00:00:27,640 --> 00:00:29,640 Speaker 2: they're paying one and a half percent cash if you 12 00:00:30,280 --> 00:00:32,800 Speaker 2: move to them. So I'd like to suc see them 13 00:00:32,840 --> 00:00:35,839 Speaker 2: pass them on befull Christmas. Everybody needs it, you know, 14 00:00:36,080 --> 00:00:38,199 Speaker 2: so they somebody needs to make them move. 15 00:00:38,400 --> 00:00:40,400 Speaker 1: So if you're in the camp at the Nikola Willis 16 00:00:40,400 --> 00:00:43,159 Speaker 1: camp that we these guys are not good actors and 17 00:00:43,200 --> 00:00:46,040 Speaker 1: they're not playing their part. This is evidence to suggest 18 00:00:46,120 --> 00:00:47,680 Speaker 1: Nicola might be on to something. Is that fair? 19 00:00:48,600 --> 00:00:52,400 Speaker 2: Oh? Absolutely? Break coft for a client fixed for three 20 00:00:52,520 --> 00:00:55,320 Speaker 2: years at four nine nine, it's twenty grand at the 21 00:00:55,320 --> 00:00:58,000 Speaker 2: moment and you're now only getting four point seven nine 22 00:00:58,040 --> 00:00:59,840 Speaker 2: for three year. That tells me that they could be 23 00:00:59,840 --> 00:01:01,720 Speaker 2: done three years of at least four and a half. 24 00:01:01,800 --> 00:01:05,160 Speaker 2: So you know, there's definitely movement. Somebody needs to make it. 25 00:01:05,160 --> 00:01:06,640 Speaker 2: I'd like to see them make it in the longer 26 00:01:06,720 --> 00:01:08,640 Speaker 2: term because if we are at the bottom of the cycle, 27 00:01:08,880 --> 00:01:10,680 Speaker 2: people are going to want to fix for two or 28 00:01:10,680 --> 00:01:12,800 Speaker 2: three years. So there's no reason why we shouldn't have 29 00:01:12,880 --> 00:01:13,759 Speaker 2: those rates at least. 30 00:01:15,480 --> 00:01:18,000 Speaker 1: Okay, So what's your vibe if you're in the fours, 31 00:01:18,040 --> 00:01:19,520 Speaker 1: If you're in the mid faurs and you're locking that 32 00:01:19,600 --> 00:01:21,800 Speaker 1: up for five years, that's about as good as it gets. 33 00:01:22,319 --> 00:01:24,039 Speaker 2: Oh yeah, look, if you could get five years at 34 00:01:24,040 --> 00:01:25,920 Speaker 2: four and a half, I'd be happy with that. It's 35 00:01:25,959 --> 00:01:28,320 Speaker 2: self funding. If it's an investment, you know, the rents 36 00:01:28,319 --> 00:01:31,720 Speaker 2: covering the mortgage, everybody wins at that level. 37 00:01:31,880 --> 00:01:35,520 Speaker 1: What's your vibe on this whole break free break fee? 38 00:01:35,720 --> 00:01:38,280 Speaker 1: You know, we'll give you cash. Let's change banks? Do 39 00:01:38,400 --> 00:01:42,039 Speaker 1: people change banks in big numbers? Is it easy or 40 00:01:42,080 --> 00:01:42,639 Speaker 1: too hard? 41 00:01:44,280 --> 00:01:46,960 Speaker 2: It depends on the client and how long they've got left. 42 00:01:47,400 --> 00:01:50,680 Speaker 2: The reality is it works for the minority of people 43 00:01:50,800 --> 00:01:53,600 Speaker 2: at this point in time, but as a whole give 44 00:01:53,640 --> 00:01:57,120 Speaker 2: us lower interest rates longer term, and everybody does better. 45 00:01:57,360 --> 00:01:59,720 Speaker 1: Good stuff, Bruce, good insight. Appreciate your time very much 46 00:01:59,720 --> 00:02:01,880 Speaker 1: and you good weekend. Bruce Patton, who's the loan market 47 00:02:01,880 --> 00:02:06,000 Speaker 1: mortgage advisor, is really disappointed. The woman whose name it 48 00:02:06,000 --> 00:02:08,320 Speaker 1: eludes me for now, on the Monetary Policy committee that 49 00:02:08,360 --> 00:02:10,520 Speaker 1: fronted up to the press conference a couple of days ago. 50 00:02:10,960 --> 00:02:13,480 Speaker 1: She alluded to it as in the margins, that the 51 00:02:13,520 --> 00:02:16,400 Speaker 1: banks are running the retail banks, but she alluded to 52 00:02:16,440 --> 00:02:18,480 Speaker 1: it in a I don't want to get involved. I'm 53 00:02:18,520 --> 00:02:20,799 Speaker 1: a bit namby pamby Hiadden. Forbid, I should say something 54 00:02:20,880 --> 00:02:22,920 Speaker 1: controversial kind of way, and I don't like people like that. 55 00:02:23,160 --> 00:02:25,040 Speaker 1: If you've got a point to make, the bloody point, 56 00:02:25,760 --> 00:02:27,399 Speaker 1: and if the banks are ripping us off, say they're 57 00:02:27,440 --> 00:02:29,000 Speaker 1: ripping us off, we need to do something about it. 58 00:02:29,040 --> 00:02:31,160 Speaker 1: So I'm more than happy to apologize to Nikola Willis 59 00:02:31,160 --> 00:02:34,040 Speaker 1: because I've argued that I can't really make up my 60 00:02:34,080 --> 00:02:36,320 Speaker 1: mind on who's the bad actor here, whether Nicholas is 61 00:02:36,360 --> 00:02:39,640 Speaker 1: overegging this or whether the banks actually actually aren't playing 62 00:02:39,680 --> 00:02:42,000 Speaker 1: the board. But you know, you can't argue with the margins. 63 00:02:42,040 --> 00:02:43,799 Speaker 1: Look at the margins, the margins and the margins, and 64 00:02:43,840 --> 00:02:46,840 Speaker 1: the banks keep defending it, but they're big margins. For 65 00:02:46,960 --> 00:02:50,320 Speaker 1: more from the Mic Asking Breakfast, listen live to news talks. 66 00:02:50,360 --> 00:02:53,560 Speaker 1: It'd be from six am weekdays, or follow the podcast 67 00:02:53,560 --> 00:02:54,400 Speaker 1: on iHeartRadio.