While the Reserve Bank decided to keep the official cash rate at a record low 1.5% yesterday, Australia’s big four banks will be increasing their lending interest rates, which will affect property investors.
National Australia Bank
(ASX:NAB) announced that its variable interest rate for (new and existing) residential investor home loans would rise by 15 basis points to 5.55%.
Westpac Bank
(ASX:WBC) says it will lift its variable rate on interest-only loans by 8 basis points.
It’s also expected that Commonwealth Bank
(ASX:CBA) and ANZ Bank
(ASX:ANZ) will follow suit and raise interest rates on investor or interest-only housing loans.
The big four banks control around 80% of the Australian lending market. After failing to pass on the RBA’s full August rate cut, the banks’ CEOs were called to a parliamentary inquiry into the banking sector. As a result of that inquiry, several recommendations were made – including the establishment of a banking tribunal for customers who have grievances against the banks.
