HomeMortgageMacquarie to pass on the full double RBA hike to borrowers

Macquarie to pass on the full double RBA hike to borrowers

[ad_1]



Macquarie Bank has announced that it will pass on the full double Reserve Bank hike to borrowers – the first major lender to do so, while the four big banks are yet to reveal their hands.

Australia’s fifth largest lender said it will lift its variable rates for new and existing customers by 0.5 percentage points, from Aug. 12, taking the bank’s lowest variable rate for owner-occupiers to 3.69%.

Macquarie has also announced that it will slash up to 0.75 percentage points from its fixed mortgage rates – a sign the tide may be turning for fixed rates, which have up until now been rising sharply.

RateCity.com.au showed the impact of the 0.5% hike to Macquarie variable rates, effective Aug. 12, with calculations based on a $500,000, 25-year loan (60% LVR):






 

Old rate

New rate

Increase in repayments, $500K

Lowest owner occupier rate

3.19%

3.69%

$133 

Lowest investor rate

3.39%

3.89%

$135

Noted: Based on an owner-occupier paying principal and interest with 25 years remaining. Rates are for LVR of 60% or less.

“Macquarie Bank is the first cab off the rank, taking just three hours to announce its RBA rate changes,” said Sally Tindall, RateCity.com.au research director. “It’s likely other banks will follow suit and pass on this rate hike in full to their variable rate customers. The big cuts to fixed rates from Macquarie suggest the tide may be turning for fixed rates, which have been sharply rising since late last year. The cost of fixed-rate funding, which has soared in recent months, is now starting to come back down, as a result we could see more banks follow Macquarie’s lead and lower fixed rates in the weeks ahead. Fixed rates are one indicator of where variable rates may be headed. Anyone considering taking out a fixed rate right now, should weigh up their options.”

 

[ad_2]

RELATED ARTICLES

Most Popular

Recent Comments