Nine lenders have now lifted interest rates

Michael Yardney About Michael Yardney

Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He has been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au

Nine lenders have lifted interest rates on their variable home loans between six and 15 basis points.

These lenders hold a combined 88 percent of the market share of home loans with banks.

Here’s a list of the banks that have announced rate hikes as at February 14, 2012.

Lender

Rate increase to variable rate

New standard variable rate

Greater Building Society

0.10%

6.90%

NAB

0.09%

7.31%

UBank

0.09%

6.23%

Bankwest

0.10%

7.30%

Commonwealth Bank

0.10%

7.41%

Adelaide Bank

0.15%

7.45%

Bendigo Bank

0.15%

7.45%

Westpac

0.10%

7.46%

ANZ

0.06%

7.36%

AVERAGE

0.10%

7.21%

The average rate increase was 10 basis points and the new highest standard variable rate out of these lenders is by Westpac at 7.46 percent.

Most borrowers should still be paying less than these levels, with discounts of between 0.50 percent and 1.00 percent still available according to Damian Smith of Rate City

“The major four banks – ANZ, Commonwealth Bank, NAB  and Westpac – which hold 81 percent of the mortgage market out of all banks stand to make about $17.6 million per month combined or $211.2 million per year in extra revenue” said Smith.

“While we’re starting to see more borrowers comparing their home loans and making the switch – applications for home loans on RateCity have already increased by 50 percent this month compared to January – there are still plenty of borrowers out there who are getting ripped off by their lender.

“If you’re not happy with your lender, make sure you do something about it and take advantage of the competition in the mortgage market right now” said Smith.

 

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