A number of smaller banks have announced out of cycle rate increases over the past week, specifically ING Bank, ME Bank and Macquarie Bank.
It is important to note that these lender’s interest rates for owner occupiers in particular – in my opinion – were well below what was being offered in comparison to Big 4.
That said as the primary reason for interest rate increases is cost of funds, we should expect the majority of banks and lenders will announce similar increases over weeks and months.
I’d expect that the Big 4, who are usually first to move, will let the burning coals cool after the Royal Banking Commission findings were released on Monday.
They would be hoping not to attract further media scrutiny.
Watch this space.