Home loan interest rates have been a hot topic in recent months. Banks and non-bank lenders continue to compete with rising international costs of funding, despite the RBA Cash Rate on hold for a record 2 years at 1.5%.
These rising international costs have placed pressure on lenders to raise interest rates, most notably by the Big 4.
Comparison site Rate City’s Research Director, Sally Tindall observed: The Big 4 are now bucking the usual rate hike trend. The banks are hiking rates for new customers. Meanwhile, lowering rates for existing customers to “stay loyal” to their long-term clients.
Not all lenders are hiking rates for new customers, though.
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“You don’t have to cop high rates at this time”, Tindall said. Economists say the next time the RBA Cash Rate moves, it will be a hike. Now is the time to shop around with other lenders. “You want your mortgage to be as small as possible for when it (RBA Cash Rate) hikes,”
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