Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Variable rates to rise

Staff Reporter 1 minute read

Major banks are likely to increase their variable home mortgage rates regardless of any movement in official rates by the Reserve Bank of Australia (RBA), Loan Market Group executive director John Kolenda has claimed.

According to Kolenda, there is evidence to suggest the banks will not pass on part or all of any future RBA rate cuts.

“They are considering lifting their rates against the trend and out of cycle because they claim their cost of funds is increasing and they are not only paying more for wholesale rates but paying more on deposits, which is another key area of their funding,” Mr Kolenda said.

Mr Kolenda said there was a strong possibility that the banks would raise variable rates above the average fixed rate of 6.39 per cent within the next three to five years.

Variable rates to rise
default
TheAdviser logo
default

 

more from the adviser
parliament Proposed BID extension delayed

The Treasurer has told The Adviser that government will delay fi...

house sold Victorian home buyers make a comeback

Mortgage commitments for owner-occupiers in Melbourne surged in N...

warning Home owners scammed by ‘ruthless criminals’

The WA government has issued a warning surrounding a new scam tha...

FROM THE WEB