SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Lending rates to hit 9.5pc

 

 

Lending rates to hit 9.5pc

Staff Reporter Comments 0
Shares 0

Jessica Darnbrough

Mortgage lending rates are expected to hit 9.5 per cent within three years, according to BIS Shrapnel.

Speaking at a media luncheon yesterday, BIS Shrapnel chief economist and director – economics and property Frank Gelber said mortgage lending rates would hit 9.5 per cent by the end of 2013.

“We were lambasted a couple of years ago when we said rates would hit 10 per cent because nobody ever thought they would get that high again. While they never got to 10 per cent, they did surpass 9 per cent pretty quickly,” he said.

According to Mr Gelber, mortgage lending rates will once again surpass 9 per cent as Australia continues to recover post the Global Financial Crisis.

Mr Gelber’s comments were largely echoed by AMP’s chief economist Shane Oliver, who indicated that the standard mortgage lending rate could tip 8.5 per cent in just one year.

“I think the RBA were right to signal further rate increases and I expect the official cash rate to hit 5.5 per cent before December 2011, which would take the standard mortgage rate to approximately 8.5 per cent,” Mr Oliver told The Adviser.

Jessica Darnbrough

Mortgage lending rates are expected to hit 9.5 per cent within three years, according to BIS Shrapnel.

Speaking at a media luncheon yesterday, BIS Shrapnel chief economist and director – economics and property Frank Gelber said mortgage lending rates would hit 9.5 per cent by the end of 2013.

“We were lambasted a couple of years ago when we said rates would hit 10 per cent because nobody ever thought they would get that high again. While they never got to 10 per cent, they did surpass 9 per cent pretty quickly,” he said.

According to Mr Gelber, mortgage lending rates will once again surpass 9 per cent as Australia continues to recover post the Global Financial Crisis.

Mr Gelber’s comments were largely echoed by AMP’s chief economist Shane Oliver, who indicated that the standard mortgage lending rate could tip 8.5 per cent in just one year.

“I think the RBA were right to signal further rate increases and I expect the official cash rate to hit 5.5 per cent before December 2011, which would take the standard mortgage rate to approximately 8.5 per cent,” Mr Oliver told The Adviser.

Lending rates to hit 9.5pc
TheAdviser logo
Shares 0
FROM THE WEB
more from the adviser
ASIC provides last-ditch ‘relief’ for AFCA transition

The corporate regulator has provided “transition relief” for ...

Risk services firm defends HEM benchmark

The head of a risk services company has said that he “completel...

Non-major bank lifts investor variable loan rates

ING has announced that it is raising its variable interest rates ...