More borrowers will refinance their mortgages in wake of bank rate rises: RateCity

A surge in home loan traffic on financial products comparison website RateCity.com.au suggests that more borrowers will refinance their mortgage in the wake of banks pushing up their mortgage rates independently of the RBA. 

Home loans as a share of RateCity’s website traffic has increased by nearly 50% in the first two weeks of February compared with the whole month of January a spokesperson has told Property Observer. 

“Overall traffic to the site has increased by 25% comparing last four months [February 2012, January 2012, December 2011 and November 2011] to the four months prior – and this growth is obviously understated because of Christmas holidays,” she says.

The RBA cut interest rates in November 2011 and December 2011, with most lenders passing on the full rate cut to borrowers.

 The pick-up in home loan traffic follows a see-saw month for borrowers, beginning with expectations that the RBA would cut interest rates by 0.25% on February 7 and ending with the major banks stinging customers with rate rises. 

Yesterday NAB became the last of the major banks to lift its rates outside of the RBA cycle, lifting its variable mortgage rate by 0.09% following increases of 0.06% by ANZ, and 0.1% by Westpac and the Commonwealth Bank.

{module What do you intend to do given the current interest rate fluctuations?}

{module Have you changed lenders in the last six years?}

 

 

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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