Big Banks Move On Rates

The big banks are the first to increase interest rates on standard variable home loans in what is likely to be the first of many rate hikes.

Westpac and Commonwealth Bank are the latest to put up their rates.

Job figures out yesterday suggest that Tuesday's rate rise by the Reserve Bank is what is to be the first of many as the economy springs back to health.

Economists have now predicted that Melbourne Cup day will be the next time the RBA will raise interest rates. The Australian reported that there is a 97 per cent possibility that the official cash rate will rise by another 0.25 percentage points.

Commonwealth Bank also lifted interest rates on its Netbank Saver account to 3 per cent.

ANZ announced that it will lift its variable mortgage interest rate by 25 basis points to 5.99 per cent from Monday October 12. ANZ's variable home loan rate will rise to 6.06 per cent from 5.81 per cent.

NAB will raise its variable rate by 25 basis points to 5.99 per cent. NAB's group executive for personal banking Lisa Gray stated that once their new rates come into effect, they will still be at historically low levels.

For all the latest changes on home loan interest rates from major lenders, please check our regularly updated article - Home Loan Interest Rates - October 2009.

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Published on October 10-th, 2009 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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