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Whether or not the Reserve Bank decides to move interest rates next month, it may now be irrelevant for many homeowners after Westpac bank decided to hike their mortgage rates independently of the RBA.
Westpac has stated that from 20 November 2015 their variable interest rate on investment and owner occupied home loans will increase by 0.2%.
The move will see Westpac’s headline standard variable mortgage rate increase to 5.68 per cent for owner-occupiers. The variable interest rate for investor loans will rise to 5.95 per cent and fixed rates will remain unchanged.
Westpac stands to make an extra $1.59 million a day from the rise, and there’s little doubt that other lenders will decide to follow suit to gain similar profits.
It’s important to keep in mind that while this news may have been unexpected for some, many of the major banks have already increased their interest rates for property investors independently of the RBA this year.
CBA, Westpac and NAB also chose not to pass on the official interest rate cut from May in full.
However, while some banks or lenders may choose to lift their rates and not pass on interest rate savings, there are still many that have very competitive deals on offer.
Make sure to review your interest rates regularly and compare what is available to ensure you’re getting the best deal.