RBA Governor Michele Bullock has announced two rate rises this year. Picture: Gaye Gerard
ANALYSIS
What’s this we see before us? Generosity from banks?
Aussie borrowers have been sweating on the movements of the RBA this year. First they hiked rates in February, then they were forced to do it again in March after inflation continued to gather steam on the back of global uncertainty and an oil supply crisis.
Then, we were horrified to hear economists predicting further hikes in the months ahead. Perhaps even another three this year.
But an analysis of more than 100 lenders has revealed that not all bank customers are suffering equally.
Most of us would assume that all lenders have passed on both rate hikes in full to borrowers. Well, most have.
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However, some lenders have only passed on one hike. And in the most shocking piece of news, three Aussies banks have not passed on either of the RBA hikes.
Those lenders are Central West Credit Union, resi and Yellow Brick Road.
Finder’s Graham Cooke said banks usually pass on increases in full.
Comparison site Finder monitors the rate movements of 109 lenders. Finder head of consumer research Graham Cooke said that “banks will almost always pass on full rate increases, but will sometimes hold back from passing on full rate decreases”.
“The shareholders, in the end, are the ones being looked after,” he said.
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“Only three very small lenders have not informed the market that they are increasing rates, but are likely to at some point.”
The three banks each had higher than average rates in the first place, with Central West offering a best standard variable of 6.90 per cent to its customers, while resi and Yellow Brick Road were both at the 6.34 per cent mark.
A number of other lenders hiked in March, but are still yet to pass on the February increase to borrowers.
These were Bank Orange, BankWAW, Broken Hill Bank, Cairns Bank, Central Murray Bank, Darling Downs Bank, Firstmac, Freedom Lend, Hume Bank, La Trobe Financial, Mortgage House, Pacific Mortgage Group, Police Credit Union, Queensland Country Bank, Reduce Home Loans, South West Slopes Bank, The Capricornian, The Mac, Transport Mutual Credit Union, Well Money, WLTH, and Yard.
Meanwhile there were four lenders that hiked in March, but not by the full 0.25 per cent.
G & C Mutual Bank and Unity Bank both raised rates by 0.1 per cent, bringing their best new rate to a market leading 5.35 per cent.
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Queensland Country Bank also raised by 0.1 per cent, with a new best rate of 5.54 per cent.
Reduce hiked by 0.2 per cent, to now offer 5.74 per cent.
Anthony Waldron, CEO of Mortgage Choice, said brokers can do the leg work for borrowers.
There are now so many different products out there, borrowers looking for the best deal may not know where to start. Mortgage Choice CEO Anthony Waldron suggested enlisting a mortgage broker to help find the most suitable options for individuals.
“Your broker can negotiate with your lender on your behalf,” Mr Waldron said. “Brokers can see how your loan compares to thousands of different products and, if there’s a better deal on the market for you, they can help you make the switch.”
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