Home News Banks will stick to RBA rate rises: Norris

Banks will stick to RBA rate rises: Norris

Font size :

The CEO of the Commonwealth Bank, Ralph Norris, has indicated that the banks will not make a grab for extra margin as official rates begin to rise, The Daily Telegraph reported today.

When asked if borrowers could expect rate hikes higher than RBA increases, Norris said: "I would be surprised if that was the case.

The major banks, which had been in lockstep with each other on interest rates for a number of years, started moving independently about two years ago. CBA's margin over the official rate has grown by about 1% in two years, including hikes outside the official schedule and failing to pass on cuts.

At 5.74%, CBA and NAB have the lower variable home loan rate of the big four banks with ANZ and Westpac on 5.81%. Heritage Building Society is offering 5.45% while Credit Union Australia's standard variable rate is currently set at 5.52%.

Despite these reassuring comments, Lisa Montgomery, consumer advocacy with Resi Mortgage Corporation says borrowers are not guaranteed the banks will stay with the RBA rate movements. 

"There's a possibility that the banks will move outside the RBA because there's still pressures in the capital market in terms of cost of funds. That is obviously disconcerting to borrowers so preparing now is the best thing to do."

For your complete guide to managing your home loan and practical tips on how to beat the rate rise, pick up a copy of Your Mortgage magazine, out on sale now.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 17, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords