Variable rate cuts will not last long: John Kolenda
Staff ReporterDecember 7, 2020
Consumers should not expect the recent variable rate cuts to last for long, a mortgage industry veteran, 1300 HomeLoan managing director John Kolenda says.
He expects many lenders to reprice sometime this year as the current margins are unsustainable with the additional costs banks are facing along with the pressures of return on equity for their shareholders, Kolenda said.
Kolenda said consumers can at least count on interest rates to stay low for the foreseeable future.
Some 17 more lenders have passed on the interest rate cut, according to finder.com.au.
This includes online banks who have cut interest rates from between 10 to 15 basis points.
