Westpac on Friday announced changes to interest rates across a range of variable lending products for home owners and investors.
Under the changes their variable rates will increase upwards of 28 basis points with their most expensive rate being a few less than six per cent per annum. George Frazis, the chief executive of Westpac Consumer Bank, said the decision takes into account a “number of economic and regulatory factors”. “These changes are in response to increasing funding costs. Despite home loan interest rates being at historically low levels, both deposits and wholesale funding of mortgages have increased over the last nine months,” he said.
This news comes after last week’s announcement that NAB was increasing their rates and our predictions over the last three months that the big four banks would be forced to increase their rates.
Our view is that if you are with a big bank you should consult with us in terms of looking at alternative options, including switching to a fixed rate or refinancing to another lender. With rates for the majors close to 6% and others below 4% you have to ask the question.
As all lenders keep a very close eye on each other it is inevitable that the CBA and will shortly follow with an announcements of increases in the coming days.
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