Hi Property Lover's
I came across this article today today from Australian Property Investor that i thought had some information home owner's should read.
Australians are being warned to be ready for interest rate increases despite the Reserve Bank of Australia's decision to keep the cash rate at 3.75 per cent this month.
Financial comparison website RateCity found interest rates for home loans have been rising despite the cash rate remaining unchanged since December 2009.
It recorded an average increase of 0.32 per cent for standard variable home loan rates across more than 100 lenders in Australia since the Reserve Bank lifted the cash rate by 0.25 per cent in December.
The four major banks – ANZ, Commonwealth Bank, National Australia Bank (NAB) and Westpac – which hold the majority of home loans, increased their standard variable home loan rates by 0.35 per cent on average since December.
RateCity's chief executive officer Damian Smith says borrowers need to be prepared for likely rate rises and not be lulled into a false sense of security by the Reserve Bank's latest decision.
"This is the time to be comparing how high your interest rate has grown compared to the average rates on the market," he says.
"Currently comparison variable home loan rates are as low as 5.7 per cent for a typical $300,000 loan, which could save you over $1300 per year compared to the average standard variable rate of 6.31 per cent for this loan size, or potentially over $33,000 over the life of a 25-year loan (excluding break costs and other fees)."
This information was gathered from from:
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