What’s up with independent interest rate rises?
The question on every mortgage holder’s lips is will major banks continue to defy the RBA, following ANZ’s decision to lift it’s standard variable rate (SVR) up by 0.6% after the RBA decided to hold rates at the last meeting? Hear what the experts at Choice Home Loans have to say.
Well, the good news is that no other banks have yet made a move like ANZ away from the Reserve Bank of Australia’s (RBA) decision to hold interest rates.
What many people might not realise is that ANZ is still competitive with other lenders.
ANZ’s move has put them almost inline with the Commonwealth Bank of Australia’s (CBA) SVR AND they’re still 4 basis points better than Westpac.
As for the RBA, there has certainly been a breakaway by the big banks and it is no longer a given that the banks will tow the line to what the RBA does.
This said, the official cash rate the RBA sets still contributes to the banks overall funding structures, so it is still a critical component and does still matter, albeit not completely.
There is a lot of talk in the market at the moment that the RBA will move the cash rate down in its May board meeting – how much is currently the question.
For their move to really make a difference to the cost of living for Australians and to the economy, the RBA really need to cut rates by 0.5% simply because it is unlikely the banks will pass on the full cut on to mortgage holders.
If you want advice on interest rates and to secure a mortgage that suits you, call the professionals at Choice Home Loans.
Need a new home loan? Want advice? Thinking about refinancing? Speak to a qualified professional at Choice Home Loans, contact them direct email@example.com or call 1300 2 CHOICE
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