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.

Donate blood, help save someone's life

LIFE SAVER: Sharon Neumann is getting ready to give blood for the 45th time.

New technology tells when and where your blood donation goes.

Give jobseekers a chance, get them off benefits

NEW DIGS: WDF supervisor Sharon Fong shows off some creations for sale in their shop, now located at the Gatton Girl Guides Hut.

WFD program calls for more support and interest

Local Partners

McMullen team prepare to take on NSW talent

McMullen duo Peter and Chantal will be looking for two sought-after pacing victories in Sydney next month.

Noll meltdown won't affect Gympie Oz Day concert

Shannon Noll

Photo Contributed

Shannon Noll is still expected to perform in Gympie next Thursday

The surprising problem police face at Woodford Folk Festival

STREET SCENE: Woodford Folk Festival 2016.

The biggest issue for police at Woodfordia is not what you'd expect

Woodford Folk Festival on track to smash records

Monsieur Camembert performs at Woodford Folk Festival.

Great artists, perfect weather the perfect recipe for Woodford

Why Emma Watson turned down Cinderella

Emma Watson in a scene from the movie Beauty and the Beast.

HARRY Potter star has standards when it comes to Disney princesses.

Wonder Woman a ‘disjointed disaster’, says DC insider

Gal Gadot in a scene from the movie Wonder Woman.

INSIDER says the much-hyped blockbuster will disappoint.

Kid nails Swift impersonation

Seven-year-old Xia Vigor nails Taylor Swift impersonation on the Philippine talent show Your Face Sounds Familiar Kids.

TAYLOR Swift has a seven-year-old doppelganger.

Ariana Grande 'hardest working 23-year-old on Earth'?

Ariana Grande

Not everyone was impressed with Grande’s self-proclaimed work ethic

Why The Walking Dead cast are paid a pittance

Despite massive ratings the cast haven't been shown the money

50 Shades Dornan on why he hates the film

Dornan and Johnson’s frequent sex scenes were ‘awkward’ to film. Picture: SuppliedSource:Supplied

Jamie Dornan doesn’t blame you for hating 50 Shades

Sunday auction for historical home

Former Catholic school sure to attract spirited bidding

Looking back, looking ahead in Noosa

NEVER-ENDING GLORY: Looking towards Laguna Bay and Hastings St from Noosa National Park.

Natural appeal of Noosa continues to attract buyers

Thousands of jobs part of $1b retirement village project

THIS YEAR: An artist impression of the new Aveo retirement village in Springfield.

Aveo Springfield unveiled this month, homes ready by July

KNIFE-EDGE: The housing tightrope we now face

Even the smallest interest rate rise will be hard for some to handle.

One if five home owners at risk, according to new analysis

'Difficult times': Rental prices tipped to increase in 2017

GREAT BUYS: There are some great rentals and houses to buy in South Gladstone. Head to gladstoneobserver.com.au for the top 10 homes under $100 to rent right now in the Gladstone region.

Investors may soon see a "profitable return” on properties.

Ready to SELL your property?

Post Your Ad Here!