Big Four Banks Profit on Rate Increase

The Big Four Banks have made a swift $17 Million dollar profit by passing on last week’s rate rises faster than rate cuts according to research by financial comparison website Mozo.com.au.

After the RBA raised official rates on October 3, the Big Four Banks all passed on the 0.25% increase to home loan customers within five or six days. But when the RBA cut rates in February and April this year, it took nine days on average for the Big Four to pass on the cut. And NAB didn’t pass on the last cut at all!

Rohan Gamble, managing director of Mozo said: “The banks want everyone to believe they have done the right thing by the Australian homeowner by only passing on the official 0.25% interest rate rise. But the fact that they moved much quicker on this rate rise than recent rate cuts shows the days of greedy bank profiteering are far from being over.

“What’s really interesting that the Big Four continue to moan about the high cost of funding. It makes us wonder just how long it will be before they break rank and push up their interest rates beyond the official RBA increase.”

Mr Gamble added: “Most homeowners feel they are at the mercy of the Big Four Banks but there are a number of very competitive home loan providers and home loan products in the marketplace. Comparison sites like Mozo continually track rates movements of the banks.”