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Home loan rates will be hiked, warns FBAA

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Australian Broker | 31 Mar 2016, 07:59 AM Agree 0
Pressure on wholesale funding costs and profit margins, coupled with looming regulatory changes may soon force banks to hike home loan rates
  • Reality | 31 Mar 2016, 10:18 AM Agree 0
    The interest margins made by Banks are a story in themselves.

    A few years ago Banks were buying incredibly cheap money, and not passing on a lot of the benefit to consumers - instead pocketing the vastly improved profit margin.

    Now as the wholesale price of funding increases, they aren't willing to return to their traditional profit margin; instead wanting to maintain the over the top profit margins they are currently earning. hence there is really no reason for interest rates to increase, other than basic greed.
  • Don Cheech | 31 Mar 2016, 11:31 AM Agree 0
    Greed, Aussie Banks, surely not in the same sentence!!
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