Big four bank borrowers may need to switch
The big four banks could raise mortgage lending rates by as much as 0.65 percentage points by July 2016 to meet new capital rules enforced by the Australian Prudential Regulation Authority.
CLSA bank analyst Brian Johnson said the banks might lift home loan interest rates or not fully pass on future RBA rate cuts.
If the banks pass all of this onto borrowers housing rates would rise by 0.65 per cent said Johnson.
Consumer group CHOICE said competition should flourish. The Custoemr Owned Banking Association said their members would cut home loan rates if the big banks raised rates.
If you want to look for a better loan deal, check out hundreds of lenders at infochoice.com.au.
Source: The New Daily