While National Australia Bank decided to increase its rates by the same amount as the RBA, the other three major banks have put up their rates by higher amounts, citing increasing wholesale funding costs.
Westpac raised its variable mortgage interest rate by 0.45%, the Commonwealth Bank by 0.37% and ANZ by 0.35%.
As a result, there is now a spread of 0.27% between the highest and lowest variable rates on offer among the major banks.
However, despite the media editorials and cries of outrage from the politicians, mortgage holders need to look beyond the ‘headline’
The interest rate is certainly an important consideration and can play a significant part in how quickly a home loan can be paid off, but there is much more to selecting a home loan than the interest rate.
Just as important is consideration of the type of loan product and loan structure that will best suit your individual circumstances and financial goals.
In the current environment your mortgage adviser adds more value than ever in knowing where to find the best deals but also pinpointing which lender will accommodate your unique personal circumstances.
The volatile and ever-changing home loan environment doesn’t mean that securing the right loan for your needs is an insurmountable task, but it is certainly a lot more challenging and time-consuming to wade through the policies, loan types, rates and lenders on offer.
At these times, the advice and guidance of your Smartline Personal Mortgage Adviser is invaluable.
Smartline is Australia's award winning mortgage broker, with franchisees in every state of Australia.
Find your local Smartline mortgage broker here;
http://www.smartline.com.au/
Our service is free and we come to you.
