Resources: Market Update

ANZ & CBA MOVE ON RATES

Posted 07/12/09 

The ANZ have just announced it will increase its rates by 0.35%, 10 basis points above the RBA's Bank's 0.25% cash rate rise on Tuesday.  The ANZ's standard variable mortgage rate will now be 6.66% effective today.

ANZ's Australia chief executive, Phil Chronican, in a statement wrote "Although interest rates remain historically low, we've tried hard to find a reasonable balance between the commercial reality we face and the wider community interest in Australia's economic recovery."

The CBA will raise rates on its variable home loans by 0.37% effective from December 9.  That takes the CBA's standard variable mortgage rate to 6.61%. 

CBA's retail banking executive, Ross McEwan, said in a statement "While the change in the official cash rate has partly contributed to this interest rate increase, the sustained increase in wholesale funding costs that we are experiencing has also been a major factor,".

So for now Westpac has the highest standard variable rate  with the others following closely behind.


NAB MATCHES RBA RATE INCREASE

Posted 04/12/09

NAB has raised its standard variable home loan rate by 0.25%, to 6.49%, effective from Friday December 4.

Lisa Gray Group Executive for personal banking at NAB said in a statement. ""We are determined to be competitive, to offer our customers a better deal and attract new customers to NAB. Today we are sending a message to customers at Westpac, and the other banks, that NAB can offer them a better deal,"

From today NAB's standard variable rate is 6.49% compared with Westpac's 6.76% which offers customers a significant amount off their monthly repayments.

The CBA and ANZ have yet to declare what they will be doing.


WESTPAC RAISES RATES

Posted 03/12/09

Westpac, Australia's second biggest home loan lender has increased its variable rate after the RBA lifted the cash rate on Tuesday.  In a move that has certainly upset many Westpac delivered a bigger than expected interest rate rise moving its standard variable lending rate up 0.45% to 6.76% or almost double the RBA decision.

The rate hikes to home loans will take effect from Friday December 4.

Westpac head of retail and business banking Peter Hanlon said in the statement: "The interest rate changes Westpac has announced today reflect the continuing cost pressures we are experiencing in wholesale funding markets as well as an increase in the official RBA cash rate.


RBA LIFT RATES AGAIN

Posted 03/12/09

The RBA has lifted rates for the third consecutive month increasing its key cash rate to 3.75%.  The RBA's deputy governor, Ric Battelino, last week said the economy's growth is likely to extend ''for a few more years yet.''

This is the approx. effect of a 0.25% increase on the following loan amounts.

Home Loan        Extra repayments

$300,000         $47

$350,000         $56

$400,000         $63

$450,000         $71

$500,000         $79

$550,000         $87

$600,000         $95

The RBA's board next meeting is scheduled next February.