Macquarie Group, Australia’s biggest investment bank, increased its home loan rates despite the fact that the Reserve Bank of Australia kept the official rate unchanged last week, Reuters reported.
This announcement came in response to rising funding costs and there is a possibility for other larger banks, including the big four, to follow suit.
Macquarie said that it was hiking mortgage rates by 6-10 basis points on Tuesday, but did not disclose the reason behind the move.
“We’re going to see the higher funding costs get eventually passed through by the major retail banks, which will further squeeze household in terms of their outlook for consumption,” said Kerry Craig, Global Market Strategist, J.P. Morgan Asset Management. “Do we see out-of-cycle rate hikes coming through from other banks in Australia? Yes, probably.”
According to Australian Financial Review, Dutch lender ING Groep NV and smaller Australian-listed lender Homeloans had both raised rates.
Meanwhile, Westpac, the country’s no. 2 lender by market value, chose not to comment on its rates due to legal reasons.
Top lender Commonwealth Bank of Australia, together with the third and fourth-biggest lenders Australia and New Zealand Banking Group and National Australia Bank, have yet to make statements regarding rates.
It is important to note that rate hikes by major lenders would put pressure on a housing market that is currently slumping in the face of tighter regulations. They could also trigger community outrage, similar to what has happened amid the public inquiry into finance sector misconduct in Australia.
Central Bank Leaves Rates At 1.5%
RBA Keenly Monitoring Australia's Home Prices
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.
We value your privacy and treat all your information seriously - you can check out