Month 25 - No Change:
The Reserve Bank of Australia have kept rates at a record low again of 1.50%. With all levers, i.e. inflation, unemployment and wage growth still gradual, a no change did not come as a surprise. A number of chief economists are still expecting rates to remain on hold until even 2020 now!
Westpac Group raises rates:
With increased costs of funding the Westpac group have announced that they will increase their standard variable rate (SVR) by 14 basis points. This will add $40 per month (approx $500 per annum) on a $500,000 home loan over 30 years principal and interest. The increase is to take effect on September 19th and will affect all the group, i.e. St George, Bank of Melbourne, Bank SA and RAMS.
Although Westpac are the first major lender to increase their SVR, a number of the smaller lenders have been increasing theirs over the past few months. With banks in the business of maximising profits, we would imagine the remainder of the major lenders are next to go.
We are still speaking with clients who are on over 4% variable on owner occupied and we encourage you to speak with our professional lending specialists. Our lending specialists can give you a free, no obligation home loan health check by comparing a range of lenders to see if you may be able to save on your loan.
Whether you're looking to buy or refinance, our experienced Lending Specialists can help. Call us today on 1300 754 562 or enquire online.
We look forward to getting you a great rate on your home loan!Back « Why you should shop around for a home loan
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