The state of the mortgage market becomes even more confusing for home loan customers with the ‘Big 4’ banks raising their standard variable rates.
The recent rate increase occurs outside of the RBA’s monthly meeting and sets a precedent for future bank initiated changes.
Westpac bank was the first of the majors to lift rates, an increase of 0.20% on their standard variable rate.
Why have rates risen?
ANZ, CBA and NAB all followed with similar rate rises, announcing that the increase responds to market conditions, as well as regulatory changes that require the banks to increase the amount of capital applied to residential mortgages.
To justify further, the banks have stated that the regulatory changes on capital requirements have increased the costs associated with providing home loans. This in turn is passed onto the borrower – YOU.
What does this mean for you?
If you are customer of the big 4 banks, now is a great time to look for a better deal. Home loan competition is fierce so you may find a great incentive to refinance to another lender.
If you are considering refinancing your current home loan then call Ashley on (03) 9432-2121 or email firstname.lastname@example.org