Mortgage holders have been warned that they could soon be facing higher repayments as the banks look to raise rates again.
Even with the RBA leaving the cash rate at 2.00 per cent yesterday, 1300HomeLoan managing director John Kolenda said consumers could see the major banks lift their rates for owner-occupiers and investors alike.
“Mortgage holders may be hit for the second time in six months by rate hikes, regardless of the RBA staying on the sidelines,” he said.
“We could again see banks increasing rates outside of the RBA’s deliberations. Last year variable rates rose by up to 29 basis points and investor loans by up to 49 basis points.
“There are likely to be similar increases across the board for owner-occupier and investor loans in the months ahead, so consumers should be prepared for that possibility.”
Mr Kolenda said that even though the RBA’s easing cycle might not be done just yet, borrowers shouldn’t expect lower rates, with the banks under pressure to comply with a regulatory increase on reserves by the end of June.
“While the RBA still has plenty of room to cut its cash rate again, its actions are expected to be made redundant by the banks lifting their rates out of cycle,” he said.
“The Australian Prudential Regulation Authority (APRA) wants to make our banks the safest in the world by enforcing new regulatory requirements that will increase the cost of providing mortgages.”