First home buyers concerned by bank rate hikes

November 27, 2015
Whitney Evans

Media Release

27th November 2015


First home buyers concerned by bank rate hikes

1 in 5 FHBs ‘didn’t know’ lenders could move rates independently of the RBA

Lenders’ moving their rates independently of the Reserve Bank of Australia is “worrying” the majority of first time buyers, new data has revealed.

According to Mortgage Choice’s annual First Home Buyer Survey, more than half (57.5%) of Australians planning to purchase property in the next two years are ‘very concerned’ or ‘somewhat concerned’ about lenders moving interest rates independently of decisions made by the central bank.

These findings come just weeks after Westpac, CBA, NAB, ANZ and a host of non-major lenders all lifted their rates.

“In October, we saw the big four banks raise their variable rates independently of the RBA by an average of 18 basis points, which clearly concerned first time buyers,” local Mortgage Choice franchise owner/mortgage broker Antony Muir said.

“To put these rate increases into a dollar figure, an 18 basis point rate increase would see a home owner’s monthly mortgage repayments climb by more than $45* on a $400,000 mortgage with an interest rate of 5.43%.”

Mr Muir said while many potential first home buyers are “understandably” concerned about the idea of the banks raising their rates independently of the Reserve Bank, it was important to remember that even with this latest rate hike by some of Australia’s lenders, home loan rates continue to sit at 50 year lows.

“Now is still a great time to be a first home buyer as there are plenty of incredibly competitive, sharply priced products they can choose from,” he said.

While the survey found the majority of potential first time buyers are concerned about rates rising independently of the Reserve Bank, Mr Flavell said the data also found one in five future first time buyers didn’t even realise the banks could or would move rates on their own terms.  

“When you consider that 18.3% of first time buyers didn’t know the banks could move rates independently of the Reserve Bank, it is clear there is more work to be done to help improve the financial literacy of Australians. Anyone planning to get their foot on the property ladder needs to understand the role and power financial institutions have on the rise and fall of interest rates,” he said.

“Buying property is one of the biggest financial commitments a person will ever make, so future first home buyers need to know exactly what they are getting themselves in for when taking on a mortgage.


“Consulting a professional from the outset will ensure first time buyers understand the options available to them while also receiving advice on the home loan that is best suited to their needs.”

If you would like learn more about your home loan or financial advice options, call 07 5504 5569 or visit  

For further information, please contact;

Mortgage Choice in Bundall

07 5504 5569


*Estimate repayment increase calculated using a 5.43%, $400,000 P&I mortgage, which rises 18 basis points to 5.61%.


About the Survey

Market research company, Nine Rewards, was commissioned by Mortgage Choice to conduct the 2015 First Home Buyer Survey. The online Survey was conducted in October and completed by more than 1,000 Australians who purchased their first home within the last two years or are looking to purchase in the next two years.

Important information

This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.


About Mortgage Choice

Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.

Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.

Since that time, the company has grown and developed into a fully fledged financial services provider.

Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.

Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.

Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).

Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.

Recent recognition: 2015, 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education;   No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.

Visit or call customer service on 13 77 62.

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