Current Mortgage Interest Rates

By FutureNestEgg | July 19, 2008

The official interest rate is currently at a 12 year high of 7.25 per cent. Usually whenever RBA rises official interest rates, banks follow suit and increase the standard variable home loan rate. Lately however the banks have increased their interest rates independent of RBA. This calendar year, RBA has increased interest rates twice but during the same period most banks raised their home loan rates almost 6 times.

This month again most banks raised the home loan rates. The increase was between 10 and 20 basis points.

ANZ increased by 15 basis points – 9.62 per cent

CBA increased by 14 basis points – 9.58 per cent

NAB increased by 15 basis points – 9.61 per cent

WBC increased by 14 basis points – 9.61 per cent

Each 25 basis point rate rise increases your monthly repayments by $17 for every $100,000 borrowed over 25 years.

The current 15 basis point rise increases your monthly repayments by $10 for every $100,000 borrowed over 25 years.

The reason the banks are acting independently to RBA is due to global credit crisis. This crisis has increased the cost of funds – and hence the banks now have to spend more to access the money that they then lend to their customers.

RBA usually increases rates to curb inflation and spending. The current increases by banks will hopefully achieve what RBA whats and lets just Hope that we don’t see any further rate rises from RBA for some time (at least for the rest of this calendar year).