If there’s one thing that pisses me off more than most, it’s people complaining about banks not passing on the full rate cut to their standard variable rate home loan when the RBA decides to cut the official cash rate at their monthly meeting. Generally, the people complaining about this will have little to no idea of how the system operates in terms of cost of wholesale funding (and also that the standard variable home loan rate is not directly linked to the RBA cash rate as has been incorrectly reported in the media on numerous occasions), but do you think that stops them?

An individuals’ ability to borrow money from a financial institution in order to purchase a property shouldn’t be seen as a right, but a privilege. I find it somewhat hypocritical to gratefully accept a banks’ funding so that you can own a property without having to save up the required amount to purchase it outright yourself, only for you to then criticise the same bank for an interest rate that you were fully aware that you were going to pay in the first place.

I’d hate to see the reactions from some of these people in the hyper-inflated Keating years, where it was common for a mortgage rate to sit around 15% p.a. They’d be having coronaries and dying in the fucking street!

The issue at play here is that people aren’t willing to do without for a period of time in order to save up a sizeable enough deposit to not have to subject themselves to ‘mortgage stress’ (see, it even has a name!) when rates shift. Additionally, they’ll always buy something at the absolute limit of their servicing capacity, leaving little to no room in their budget for increased repayments should rates rise. Then, when rates do rise (and they will always go up and down, hence the term ‘variable’, for fucks sake) they’ll be the first ones to cry poor and blame the bank, the credit union, the building society or anyone or anything else other than themselves. Inept fucks.

Of course, when rates do drop lower and they’ve got extra money in their budget, are they using that extra cash to pay off their debt more quickly and reduce their overall interest payments? Hell no, they’re too busy buying mini-moto bikes, alloy rims for their VT Commodore and signing up for jet-skis on finance terms. Nothing says, ‘I’m a stupid bogan twat’ like buying a number of depreciating assets in lieu of making capital contributions to a debt attached to an appreciating asset. Dickheads.

 Oh, you also have to refer to them as ‘me toys’ (sic).

My advice to all those whingeing dickheads complaining about their mortgage rate? Save a larger deposit and aim a little lower; you’ll pay the evil bank less in interest repayments and own your home more quickly. You can then look to sell that home and use the funds as a substantial deposit on your next, more bespoke property (and so on and so on).

Or you could do your research and move banks. You’ll find that the bank you move to will undoubtedly have the same policies and procedures as the one you just left. It’s not some industry-wide collusion where all of the banks get together and scheme and plan about how they’re next going to put you over the barrel and sodomize you, it’s just their cost of doing business.

/end communication