Will the banks raise your mortgage rate?
Thursday May 15, 2008
Many banks have raised their mortgage rate higher than the official rises of the Reserve Bank of Australia (RBA) but will this trend continue? It is quite likely that it could, as the RBA seem to be trying to withhold official rises for as long as the banks continue to responsibly moderate their own mortgage rate.
The banks are not just raising the mortgage rate in order to preserve profits as they also must do this to slow down the rapidly rising value of money. Inflation is increasing dramatically, but strict financial policy among the banks coupled with a recent Federal Budget intended to tackle inflation should hopefully see it fall by the end of the next financial year.
Please visit our home loans and mortgages page for a suite of lenders who may be able to offer you a great mortgage rate.
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