2019: Start of Rate Hikes
Will the RBA cut rates in 2019? Virgin Money and Bank of Queensland are the latest lenders to hike rates, quoting the rise in wholesale funding costs as the primary reason. Buyers are starting to shop around for more competitive rates from smaller lenders. Reduce Home Loans continues to hold a highly competitive 3.44% Variable rate for Owner Occupied purchases and refinances, so check out our Rate Slasher and Rate Lovers home loans today.
The first lender to raise interest rate is Bank of Queensland, with a home loan rate of between 0.11% and 0.18% while Virgin Money announced a 0.20% rate rise for all existing customers. Rate changes was applied last January 11, 2019. The rate hike from these banks could possibly influence other lenders and they might also announce an increase this year. Lyn McGrath, Group Executive of Retail Banking at Bank of Queensland states “Continuing funding cost pressures and intense competition for term deposits have contributed to this decision,”
Those who are planning to buy homes, there are still options with rates as low as 3.44%*. See Mozo’s home loan comparison tool and begin your search for a low home loan rate. As of the moment, Reduce Home Loans offers the lowest interest rate at 3.44%.