Despite the Reserve Bank of Australia (RBA) keeping a record low interest rate of 1.5% for the last 25 consecutive months & Westpac recording a $5.4 billion profit last year. Westpac announced that they are increasing their variable interest rates by 0.14% p.a.
On a $500k loan this is going to increase your repayment by approx. $700 p.a. This is disheartening as banks are claiming it’s due to increased pressure from the international markets increasing their interest rates. A lot of the Australian banks get their wholesale funding from overseas so if they increase, our banks feel pressured into increasing their rates too.
If you are a Westpac customer you won’t be the only ones that are put out… ANZ and CBA (who record a profit of $9.3 billion) followed today, increasing their rates by 16 and 15 basis points respectively.
If this information concerns you or your lifestyle cannot absorb further increases, now is the time to get in touch with us. We can review your mortgage to ensure you’re on the best rate and advise should you wish to look at some of the many great fixed rate options that are still available in the market.
If you haven’t reviewed your mortgage or interest rate in a while now is the perfect time to pick up the phone and give me a call – 0430 227 328 or email me on [email protected]