Spotlight on major banks after the rate rise

All eyes will be on the majors in light of CBA’s decision to lift its standard variable rate 20 basis points above the RBA.

While CBA took less than one hour to announce its rate hike, the other major lenders have been a little slower off the mark.

Federal Treasurer Wayne Swan branded CBA’s rate hike as a “cynical cash grab” and vowed to introduce reforms to boost competition between the lenders.

But while CBA’s decision managed to appal Mr Swan, it failed to shock the industry, with both CBA and Westpac consistently warning that higher funding costs would cause them to step out of cycle with the RBA.

If all the majors move this week, it could open up sound opportunities for the non-bank sector. Read More »

Picking the wrong time to fix

A review of the fixed rate loan data in the Infochoice database shows  a couple of interesting trends. Once again borrowers have picked the wrong time to fix. Average three and five year fixed rates bottomed in March and have risen quite sharply since then. Read More »