Monday, 11 January 2016

The RBA has rates on hold while banks raise them, what's going on?

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While the last move on interest rates by the Reserve Bank of Australia (RBA) in May 2015 was down over the next few weeks and even into next year many borrowers are going to be getting a letter in the mail advising that their home loan rate is going up.

 

Now, at first, it was just property investors and those with interest only loans but with the recent announcement by ING DIRECT that they will increase variable interest rates on all residential loan products by 0.18% p.a. Effective from 15 January 2016. It seems that no one is immune from the recent rate rises

As the table below shows, over the last few weeks, the major banks and other lenders have been busy increasing their interest rates for owner occupier and investment home loans.
So while the big four banks copped much of the negative press, it seems a global interest rate increase across all lenders. 

While some lenders have not made announcements yet, we believe they will shortly.

Bank Rate Rise Effective Date
Adelaide Bank +0.07 % 20 Nov 2015
AMP +0.18% 20 Nov 2015
ANZ +0.18% 20 Nov 2015
Bank of Melbourne +0.15% 20 Nov 2015
Bank of Queensland +0.29% 10 Aug 2015
Bank West +0.18% 17 Nov 2015
Bendigo Bank +0.12% 20 Nov 2015
Citibank +0.20% 30 Oct 2015
Commonwealth Bank +0.15% 20 Nov 2015
Heritage Bank +0.17% 27 Nov 2015
IMB +0.15% 1 Jan 2016
ING Direct Bank +018% 15 Jan 2016
Macquarie Bank +0.20% 20 Nov 2015
Member Equity Bank ( ME) +0.20% 20 Nov 2015
RAMS Home Loans +0.15% 20 Nov 2015
NAB +0.17% 12 Nov 2015
St George Bank +0.15% 20 Nov 2015
Suncorp Bank +0.16% 20 Nov 2015
Westpac +0.20% 20 Nov 2015

Where to from here?

Much of the change has been driven by the new pressure by APRA and the new banking standards designed to ensure we don’t experience another GFC ( Global Financial Crisis), and while these changes affect both banks and non-banks, there are discounts that still can be found.
Why not contact us today to compare your loans with what is available in the market or have us design a property acquisition plan.

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