Variable rates now 3% over RBA cash rate
New research shows the big banks have ‘charged’ their borrowers an extra $18bn by not passing on the RBA’s rate cuts to standard variables over the past five years.
The benchmark standard variable rate was 182 basis points above the cash rate in October 2007, and has gradually increased to a current level of 337 basis points, a difference of 155 basis points.
The result means that on a typical $300,000 mortgage, borrowers have paid an extra $11,687 over the past five years.
ING Direct’s executive director distribution, Lisa Claes said a bank’s funding mix today is influenced by a variety of factors beyond the RBA cash rate. The other factors include the structure of a bank’s balance sheet.
Source: Broker News