According to an article on the Australian Broker website, analysts at wealth management firm Morgan Stanley have predicted in a research note to clients that there is a “high probability” that lenders will increase rates for borrowers following the election in the wake of cost pressures.
The research note suggests that banks are currently holding back a rate increase so as to not come up against a government campaigning for re-election.
Morgan Stanley’s note to investors said, “Despite the near-term pressures, we expect the timing of future re-pricing initiatives for the major banks to be delayed until after the federal election.”
The Australian Broker estimates that 20 banks have increased rates on certain products over the past month, including home loans, despite the RBA cash rate being kept on hold.
While borrowers won’t welcome this news, interest rate rises are something that borrowers should always be prepared for. Those that aren’t prepared can however start looking at their options now.
Keep in mind that there are some great rates available at present, and even with a hike, Australian borrowers are enjoying some of the lowest rates in recent history.
Make sure to review your interest rates regularly though, and compare what is available to ensure you’re getting the best deal.
If you need help comparing your options, Professionals Finance can be of assistance. Visit www.professionalsfinance.com.au to find out more, or give us a call if you would prefer a personal introduction.