Lenders that lift their rates in line with the RBA will find themselves $98.9 million per month better-off, RateCity chief executive officer Damian Smith has said.
Mr Smith said based on the national average home loan size of $287,700 and the benchmark (the average of the four major banks) basic variable rate, a cash rate rise of 25 basis points to variable mortgage customers’ loans could mean that the average household will pay significantly more in their monthly repayments.
“Borrowers with the average loan size of $287,700 should expect a $46 increase to their repayments, which will now be about $2,043 (based on the benchmark basic variable rate of 6.80 percent increasing to 7.05 percent),” Mr Smith said.
"We’ll be watching to see if lenders move out of the Reserve Bank’s margins and increase their rates further than 25 basis points,” he said.
But lenders are not only likely to benefit from the cash rate rise. Mr Smith said the RBA’s latest decision will also benefit those who don’t have a mortgage.
“People with savings will benefit because we expect at least some of the rate rise to be passed onto savers and we’re still seeing financial institutions competing hard for deposits,” he said.
The business lender has rolled out a new broker platform, as it h...
Brokers are key to holding lenders to account to ensure borrowers...