Newsflash – Interest Rates Up

By Janet Spencer

Buyer Solutions wishes to advise that interest rates are on the way up with two of the “big four” lenders.

National Australia Bank and Westpac have joined forces and increased Interest Rates.

National Australia Bank announced their decision last Thursday to lift the Standard Variable Rate by 0.07 per cent hours after the US Federal Reserve increased its key interest rate.  The new standard variable rate for owner occupiers will rise to 5.32% , and its investor rate will rise 0.25 percentage points to 5.8%.

On Friday Westpac made the decision to increase owner occupiers who make principal and interest repayments by 0.03 percentage points to 5.32%.  Interest only rates will rise 0.08 percentage points to 5.49%.

However Investors will be the worst hit with a rise of 0.23 percentage points to 5.79% for principal and interest and 0.28 percentage points to 5.96%  for interest only repayments.

These changes will come into effect from Friday 24th March for both lenders. At this time, no other lenders have followed but who knows what will happen in coming weeks.

At Buyer Solutions we always recommend investors conduct a revision of their lending arrangements every 2 to 5 years to ensure that they are on the best possible rates and lending terms.

Should you require a referral to a good lending consultant, we will happily provide one. Buyer Solutions encourages anyone with a mortgage not to be indifferent and consider changing lenders or at least getting a second opinion and negotiating with your current loan provider.

Buying property, First home buyers, Housing Affordability, Investment, Investment property

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