Westpac on Friday announced changes to interest rates across a range of variable lending products for home owners and investors.
Under the changes their variable rates will increase upwards of 28 basis points with their most expensive rate being a few less than six per cent per annum. George Frazis, the chief executive of Westpac Consumer Bank, said the decision takes into account a “number of economic and regulatory factors”. “These changes are in response to increasing funding costs. Despite home loan interest rates being at historically low levels, both deposits and wholesale funding of mortgages have increased over the last nine months,” he said.
This news comes after last week’s announcement that NAB was increasing their rates and our predictions over the last three months that the big four banks would be forced to increase their rates.
Our view is that if you are with a big bank you should consult with us in terms of looking at alternative options, including switching to a fixed rate or refinancing to another lender. With rates for the majors close to 6% and others below 4% you have to ask the question.
As all lenders keep a very close eye on each other it is inevitable that the CBA and will shortly follow with an announcements of increases in the coming days.
Disclaimer
This information is current as at 20/03/17 This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.
