In only the last week many investor and interest only loan interest rates will or have risen by 0.25 to 0.40%.
This is on the back of APRA telling Australia’s major banks to hold more capital against their mortgage books. Indeed Bank analyst Brian Johnson says the major banks will lift rates further.
In a related article the ABC’s business reporter, Michael Janda writes, “Banks warn that APRA move on home loan risks will push up mortgage costs.” Importantly this article points out that the change applies only to the four major banks (ANZ, CBA, NAB and Westpac) and Macquarie Bank.
This means that if your situation will be significantly affected by the rate rises there are alternatives available.
We strongly suggest you contact your Finance Broker so they can assist you to review your situation and let you know how this impacts your lending.