Website Notifications

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

Banks may increase variable rates independent of RBA

Staff Reporter 1 minute read

Variable interest rates may rise by 0.15 per cent before the RBA lifts its cash rate, a new study has warned.

According to the financial comparison website RateCity, variable rates are expected to rise in the near future as the costs of funding continue to increase.

“The best indicator of what rate banks are paying to borrow their funds is the 90-day Bank Bill Swap Rate, and this has risen from 3.36 percent to 3.45 percent in the last couple of weeks alone,” RateCity’s chief executive officer Damian Smith said.

The big four banks have not moved many of their key variable rates for up to seven months, indicating the time for a rate rise is now.

“If the big four banks lift their rates, this will impact about 90 percent of Australians with a variable home loan,” Mr Smith said.

RateCity expects the current average standard variable interest rate of 5.5 percent per annum to rise to 5.65 percent before the end of the year.

Banks may increase variable rates independent of RBA
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.



more from the adviser
Carolyn Murphy ta Teachers Mutual targets brokers in digital bank launch

Hiver, a new digital bank to be launched under Teachers Mutual, i...

mortgage money house Qld real estate body calls for stamp duty reform

The REIQ has slammed the Queensland government for failing to act...

Alexis Holloway ta Pallas Capital appoints senior credit manager

The non-bank lender has appointed a senior credit manager whose r...