Following the Reserve Bank of Australia’s (RBA) decision on Tuesday, 2 November 2010 to increase the target cash rate by 0.25% p.a. coupled with higher funding costs, All lenders have decided that their variable rates will increase well above and beyond the RBA’s movement.
With all financial institutions citing increased funding costs and ASIC’s view on excessive early repayment fees, costs are going to continue to rise and it’s never been more important to keep count.
The lender comparison chart below highlights the higher than RBA movements made by the big four lest we forget.
December 2009 0.12% 0.00% 0.20% 0.10%
November 2010 0.20% 0.18% 0.10% 0.14%
Keep this in mind when considering your future lending requirements or talk to your broker.