 Fixed rates increase
The Commonwealth Bank, National Australia Bank and Westpac have all raised the interest rates on their fixed mortgages.
The Commonwealth Bank will raise their fixed mortgage rate by between 20 and 45 basis points effective from today, except for those with one-year terms.
The bank says the hike is needed to offset an increase in the cost of funding fixed-rate mortgages.
NAB's increased their two year standard fixed rate by 20 basis points to 5.29 per cent on April 14, and the rate for three-year home loans was also lifted to 5.49 per cent..
On Sunday, the Federal Government announced proposed relief for consumers wanting to switch lenders. Assistant Treasurer Chris Bowen said if the proposed federal law is passed, bank customers could be able to challenge "unfair" contractual terms including exit fees and penalty fees if their bank refuses to pass on interest rate cuts. NAB did not pass on any cut to its home loan rates following the RBA's decision to cut the official interest rate to 3 per cent earlier this month. The move has angered many, coming just two weeks after a further rate cut from the Reserve Bank. Following the RBA's decision to cut official interest rates by 25 basis points, most major banks only passed on cuts of 10 basis points to home owners with a variable mortgage.
National Australia Bank and Bendigo and Adelaide Bank did not pass on any rate cut at all after the RBA's announcement.
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