Major banks continue to move rates independently of the RBA's decisions.... This can be somewhat confusing and frustrating, so it's important we keep our clients aware of lender developments that directly effect them.
Why are lenders moving rates independently of the RBA?
The decision of major lenders to increase home loan rates out of cycle has become more common and is likely continue, creating a much higher level of uncertainty in the market for home owners and future borrowers. Major banks are pointing to the higher cost of funding largely brought on by regulatory changes requiring banks to restrict investor lending and increase their capital reserves.. Following increases to investor rates which begun last year, we're now seeing signs of increases to Owner Occupied rates with several of the major banks having already announced increases, and others expected to follow.
Is now the time for a Home Loan Health Check?
Yes is the short answer...... We are watching developments every day across our panel of 25 lenders. Recent rate increases have opened up some good opportunities with the non-majors, on both variable and fixed rates. It's important to consider all aspects of the loan before refinancing on rate alone, but there's no reason in today's environment why you should be treated with contempt by your existing lender.
Give us a call if you wish to discuss your circumstances.
If you'd like us to take a look at your home loan options, please don't hesitate to contact us. We will review your current loan in the context of the current rate environment to see how it compares against hundreds of others from our wide panel of lenders. We’ll take into account rates, fees and features, and recommend whether refinancing is worth while at this time, or not.
Likewise if you have a family member or friend that you feel may benefit from this process, please don't hesitate to forward this email to them.
Thank you for your continued support.
Michael, Geoff, and the team at Mortgage Choice in Camberwell...
Michael Wren: 0439 207 242