Property

Banks unlikely to lift rates

Mr Smith said although the Bank of Queensland lifted its standard variable interest rates yesterday by 10 basis points it had been one of the few lenders not to increase mortgage rates in February.
Mr Smith said although the Bank of Queensland lifted its standard variable interest rates yesterday by 10 basis points it had been one of the few lenders not to increase mortgage rates in February. Kieran Salsone

THE major banks are unlikely to increase their variable interest rates this month despite raising them independently of the Reserve Bank of Australia in February, according to a survey by leading mortgage broker Loan Market

Loan Market Corporate Spokesman Paul Smith said a survey of the company's mortgage brokers found 65 per cent expect no movement from the major lenders in March after the RBA again kept its cash rate on hold at 4.25 per cent.

Mr Smith said although the Bank of Queensland lifted its standard variable interest rates yesterday by 10 basis points it had been one of the few lenders not to increase mortgage rates in February.

"The majority of our brokers believe the major banks will leave their rates alone this month," he said.

Mr Smith said 31 per cent of the 138 broker respondents thought banks could lift their rates up to 10 basis points, while four per cent believed they could increase rates between 11 and 20 basis points. No one tipped a rate cut.

He said the industry would keenly watch the outcome of ANZ's monthly rate meeting this Friday after that bank was the first to move out of cycle last month.

"Banks made their moves last month to adjust their rates to offset market conditions that developed not just during the RBA's two month hiatus but to compensate for global conditions to which the RBA cannot influence with rate decisions," Mr Smith said.

"In the past month, we haven't seen any significant developments, from a funding perspective, to signal the major banks to raise rates above their increases last month. If they increase rates again it will only be slight posturing and nothing significant."

Mr Smith said that while it was unlikely the major banks would move their variable rates in March, some smaller banks and other lenders could feel the pressure to move if they hadn't last month.

"Borrowers should also be mindful of the wide range of variable rates available and if they are unhappy they can shop around for a better deal," he said.

Mr Smith said that a mortgage broker was well placed to run a client through a number of lender options and offer information that suited for individual circumstances and priorities.

Topics:  big banks, cash rate, interest rates, rba


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Phillips’ has his eye on target

AIM HIGH: Toowoomba Pistol Club shooter Guyron Phillips prepares for upcoming Action Pistol Shoot on Saturday.

Shooter has eye on Action Pistol Shoot

Lockyer Valley wildlife carer busy after Laidley fires

Wildlife carer Ludo Valenza is worried the recent spate of fires around Laidley may have injured native wildlife.

Lockyer Valley wildlife carer concerned by Laidley fires.

Latest deals and offers

Late Dave Teis commitment honoured

WALKING up the steps to the Lowood Show Hall you’d expect to hear the accordion being played by the late Dave Teis.

Phillips’ has his eye on target

AIM HIGH: Toowoomba Pistol Club shooter Guyron Phillips prepares for upcoming Action Pistol Shoot on Saturday.

Shooter has eye on Action Pistol Shoot

Lockyer Valley wildlife carer busy after Laidley fires

Wildlife carer Ludo Valenza is worried the recent spate of fires around Laidley may have injured native wildlife.

Lockyer Valley wildlife carer concerned by Laidley fires.

Breast-cakes raise awareness at Lockyer morning tea

BREAST CAKES: Lockyer Valley mayor Tanya Milligan and morning tea host Anna McWhinney show off the breast cancer awareness cupcakes.

Ladies grab cupcakes for cancer council

Fourth Laidley fire clearly lit on purpose: Police

The fire on Paroz St, Laidley, captured by Ray Watterson.

Laidley fire treated as suspicious

The best retro movies of the week? May 27 - June 3

Gregory Peck Photo Contributed

This week TV fan get to see Tom Cruise in a 1980s classics

Barnaby Joyce talks Johnny Depp's dogs in Tweed

Deputy Prime Minister Barnaby Joyce talks about Johnny Depp's dogs Pistol and Boo...

Billy Slater talks Origin Team

Queensland Origin great Billy Slater.

Queensland Origin great Billy Slater talks about this years team and his return to...

Road rage caught on Dashcam

Attack with a baseball bat caught on Dashcam

Video of a violent road rage incident in Orange last December.

Own Sunshine Coast property? You’re about to make money

UP AND UP: Property owners are likely to win from rent and price increases but tenants and first home buyers might not be so happy. Photo: Brett Wortman / Sunshine Coast Daily

Good new for property owners, not so good for buyers and tenants.

Sale nears on last large block of land in Coolum

The 43.37ha property on South Coolum Rd has sold.

South Coolum Rd property to be land banked