Major banks are increasing the rates for fixed home loans. Three of Australia's biggest lenders have announced their fixed rate mortgages will increase by between 20 and 45 basis points.
Commonwealth Bank will increase its fixed rate mortgage by 0.45 percentage points from today, Westpac already increased its fixed rates by up to 0.4 percentage points effective from yesterday and National Australia Bank has also increased some fixed rates. "The Commonwealth Bank's rates on fixed interest home loans reflect the recent increases in wholesale market rates, where the bank funds fixed-term home loans from," CBA spokesman Steve Batten said yesterday.
"Many consumers are continuing to opt for a variable rate product," he said. "We continue to have the lowest variable rate of all major banks (at 5.64 per cent)."
ANZ already had the highest rates and have not moved to raise rates higher.
All banks are putting blame for the rises on wholesale rates, the main funding source for their loans. Rate have increased sharply since early March as financial markets are more certain the global recession will not become a depression.
Earlier this month the Australian Bureau of Statistics said the number of fixed-rate loans as a proportion of all new mortgages dropped to 2.7 per cent in February.
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