More home loan rate hikes may follow

Friday 12 June 2009

Article by Mozo

Commonwealth Bank may not be the only bank to increase their home loan interest rates, lenders have announced.

Business Daily has received confirmation from a string of home loan providers that they are reviewing their home loan rates with a view to pushing them up.

National Australia Bank has been widely tipped as the next bank that will announce an interest rate hike.

Although spokesperson Luisa Ford would not be drawn on the likelihood of such a move, she did say that banks are seeing their funding costs spiral.

"We expect overall costs to increase into 2010, driven mainly by the rising average cost of term wholesale and retail deposit costs," she told the paper.

Commonwealth announced that it will be increasing its variable home loan rates by 0.1 percentage points on Friday (June 12th), a move which provoked a raft of angry responses, with Wayne Swan’s voice prominent among the chorus.

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