Why do banks raise interest rates when the RBA doesn’t?
Some of the reasoning driving bank rate rises

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Home buyers and property investors are often perplexed by the decision of banks to raise interest rates while the Reserve Bank of Australia (RBA) cash rate remains stable. 

The traditional justification by banks for increasing interest rates, when the official RBA cash rate hasn't moved, is that their own borrowing has become more expensive including the rate paid on our deposits and increases in offshore borrowing. These additional costs are then passed onto customers.

Australia’s major banks have also expressed concern over rising funding costs as a direct result of the federal government’s recent levy, warning that customer lending costs may increase as a direct result.

Home loan rates are still at record low levels. How does your loan measure up against current market offerings? With further talk of rate increases from major banks as well as a potential RBA increase down the track, perhaps now is the time to review and reset your home loan or even consider fixing your interest rate at the current record low levels.

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Understanding the fine details of the many home loan options out there is often confusing and complicated. HomeLoanReport.com.au makes the process of gathering and understanding the information easy for you.  You will receive a report with borrowing capacity, estimated loan repayments, and more, as well as a chance to chat with a home loan professional to discuss your requirements.  All of this is absolutely FREE.  Request your home loan report today for the chance to potentially save thousands on your home loan.

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