Home Loans, Mortgage Refinance, Bad Credit Home Loans

THE decision by Commonwealth Bank to follow Westpac in increasing mortgage rates by more than the RBA’s policy move leaves the door open for ANZ to do likewise.

The move by CBA to lift its rates by 37 basis points, which is 12bp beyond the RBA’s policy, also leaves National Australia Bank as the only big bank to follow the central bank’s recommended increase of 25bp.

ANZ can be expected to increase its rates by about 10bp beyond the central bank’s policy.

Westpac’s chief executive, Gail Kelly, emerges as one winner because she went out hard early, in the hope others would follow, which they have – after letting her cop the political pressure for a couple of days.

FEDERAL Treasurer Wayne Swan says the latest official interest rate rise was “unsurprising” but admits it will be tough on the family budget.

The Reserve Bank of Australia (RBA) today raised the cash rate by a quarter of a percentage point, to 3.75 per cent.

It is the first time the RBA has lifted the cash rate three months in a row since it began announcing its decisions on monetary policy in January 1990.

Mr Swan said rates could not have stayed at an emergency half-century low of 3.0 per cent forever.

“This is tough for families … when rates go up it has an impact on the family budget,” Mr Swan said in Canberra.

He said the Australian economy is recovering and what that means is that over time rates will...

AUSTRALIA’S second biggest home loan lender Westpac has raised its standard variable lending rate by almost double the amount of the central bank’s increase.

Westpac said it would increase its standard variable home loan rate by 45 basis points 6.76 per cent, effective this Friday.

The Reserve Bank earlier today increased its base cash interest rate by 25 basis points to 3.75 per cent.

“The interest rate changes Westpac has announced today reflect the continuing cost pressures we are experiencing in wholesale funding markets as well as an increase in the official RBA cash rate,” Westpac head of retail and business banking Peter Hanlon said in the statement.

“Both components, along with the higher rates we are paying on...