​First Lender to raise home loan rates in 6 years?

Concerning news. ING announces a 0.15% increase to variable HOME LOANS (and all variable loans) effective Monday 12 December.

MARTIN COMMENT; This is outside of any reserve bank change (ie the RBA did NOT move rates up)... The ING increase is also different to the recent increases in fixed rates and investment property rates announced by many lenders in the past 3 weeks. I maybe wrong but I think this is the first bank to do an across the board HOME LOAN increase in variable rates in (maybe) 6 years ....

MARTIN MORE COMMENT; The last Reserve Bank increase was Nov 2010 when the cash rate went from 4.5% to 4.75%. Since then it's kept coming down and sits now at 1.5%. Banks add a "cost of funds" to use their money, so the going rate right now for home loans is around 4%. The fact that ING has moved up now means I'd expect other banks to follow suit. The standard reason is "the cost of money to the bank is increasing" - whether that's true or not is unknown to me.

PS: I don't wish to "blame" ING. It's just their turn to do it first. Right now, their variable home loan rates are about 0.3% lower than the major banks - so it maybe just them re-aligning to the rest of the market. Fair enough. Let's see if the other banks move up as well. You might have seen I "rang the bell" recently that I think rates have bottomed and you might look at fixing in some of your loan.


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