Wednesday 4th April 2018Rates Could Rise Despite RBA Staying on Sidelines
Some lenders could be looking to increase their home loan interest rates despite the Reserve Bank of Australia’s record breaking run of keeping its official cash rate on hold, according to mortgage broker network 1300HomeLoan.
1300HomeLoan Managing Director John Kolenda said official interest rates have remained at 1.5 per cent for 18 consecutive RBA board meetings since August, 2016, with most forecasters expecting the central bank to stay on the sidelines for the remainder of 2018.
But Mr Kolenda said in another sign of confusion for home loan customers, some lenders have warned their home loan rates could rise due to cost of funding issues.
“While the RBA looks like keeping its cash rate on hold, there are some lenders facing increases in the cost of their wholesale funding which they blame on the impact of US economic policies,” he said.
“They have already lifted rates for business loans and have warned they may have to also pass on these increases to home loans.”
Mr Kolenda said the chaotic lending landscape made it imperative for mortgage holders to stay on top of their home loan situation and seek the best advice.
“Home loan customers will be costing themselves thousands of dollars by being complacent and not consulting an expert mortgage broker to make sure they can get the best deal on their mortgage in the current environment,” he said.
“While it may be confusing for borrowers with a host of home loan products and variations in interest rates, it’s still a highly competitive lending market and pertinent for home owners to seek expert advice to navigate this minefield.”