Interest Rates On Hold – What Will the Banks Do?

Today the RBA left interest rates at 4.25% but there are some murmurings that the major banks are going to lift rates again.

It will be interesting to see who pulls the trigger first. ANZ  took the brunt of the criticism last month when they announced the increase before all others. However, they increased their variable rate less that all of the other majors.

It will be interesting to see what the banks will do this time round but we may expect an increase.


Westpac Increase Variable Rate by 0.10%

Late Friday afternoon Westpac Bank increased its standard variable rate loans by 0.10% following ANZs increase of 0.06%

We are now waiting for NAB and Commonwealth Bank to make their decision.

We will keep you updated.

If you are tired of the major banks increasing interet rates please speak to one of our mortgage brokers for alternate options


ANZ Increase Home Loan Variable Rates by 0.06%

In a not so surprise move today, ANZ have increased their variable rate by 0.06% for home and business loans.

This puts ANZs standard variable rate for home loans on par with Westpac but higher than Commonwealth Banks and NAB.

NAB earlier this week announced that they will have the lowest standard variable rate amongst the big four.

There are hundreds of home loan products and it seems the major banks no longer offer the most competitive rates. To find out more complete the form below and find out what offers our brokers can find you.


Interest Rates On Hold

In a shock move the Reserve Bank of Australia have left interest rates on hold for February.

Economists are scratching their heads as 24 out of 27 predicted that rates would fall to 4.00% from 4.25%.

Retailers are also disappointed as they thought that a reduction in rates would lead to greater consumer spending.

There was no guarantee that the lenders were going to pass on the full interest rate cut, if at all as. There were rumblings around the industry that the banks were not going to pass on the full rate cut. NAB made a pledge that they will have the lowest standard variable rate amongst the big banks but with all the discounting going on they may not have the best deal.

We will just have to wait until next month to await the RBAs decision.


Bank Pass on December Interest Rate Cut… But When?

We  all know the news that all banks and smaller lenders have passed on the full 0.25% rate cut.

The question is, when will they pass it on? As mentioned in an earlier post lenders are quick to pass on interest rate increases but slow to pass on interest rate decreases. Below is a table comparing the differences between the banks between the November and December interest rate decreases.

The biggest difference between the rate announcement and the time they are going to pass on the rate cut is Bendigo and Adelaide Banks. In the last 2 months their customers are paying an extra 0.25% over 50 days. CBA was the quickest to pass on the rate cut in November but has taken eleven extra days this time round.

From this data it is important to choose a lender that pass on rate cuts as soon as possible. So called comparison rate schedules never really show the true cost of a loan and you need to be aware which lenders serve their customers best.

Current Bank Interest RatesBank Rate Cut November Rate Cut Days December Rate Cut Days Date December Rate Cut
Adelaide Bank/ Bendigo Bank -0.25% 26 24 December 30th
AMP -0.25% 9 13 December 19th
ANZ -0.25% 12 10 December 16th
Bank of Melbourne -0.25% 12 13 December 19th
BankWest -0.25 12 to 16 13 December 19th
Citibank -0.25% 16 10 December 16th
Commonwealth Bank -0.25% 2 13 December 19th
Homeside Lending -0.25% 9 10 December 16th
ING Bank -0.25% 5 9 December 15th
Member equity bank ( ME) -0.25% 5 5 December 11th
Macqauire Bank -0.25% 19 ???  
NAB -0.20% 9 10 December 16th
St George Bank -0.25% 12 13 December 19th
Suncorp Bank -0.25% 16 13 December 19th
Westpac -0.25% 12 13 December 19th



ANZ, NAB, Westpac and Commonwealth Bank Pass on Full Rate Cut

Yesterday saw ANZ to be the first of the big banks to pass on the full interest rate cut to its variable rate customers.

Later that day NAB, ING Direct and Commonwealth Bank followed. Westpac waited until the evening to announce their intention. I expect all the second tier banks and other lenders to follow.

Obviously, from this behaviour I expect that we will not see full interest rate cuts in the future or interest rate increases outside the Reserve Bank of Australia’s recommendations.

We will keep you updated when the lenders will be passing on the interest rate cuts and the new standard variable rates for each bank and lender.

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