The customers of Commonwealth Bank will be charged up to $116 more in monthly repayments on the average home loan if their mortgage interest rate is fixed by them.
Those Commonwealth customers who have fixed their loans for about four years will be worse affected by this, as the rates are rising 0.6 percentage points to 7.59 %.
There has been a least rise in the bank’s rate for a mortgage with a redraw option, fixed for one year,the rates climbed 0.15 points to 5.54%.
Yesterday’s fixed interest rate rises have come as the a finance expert’s evidence has been heard by the Senate that the big four
banks’ growing power made it more likely that consumers would be "price gouged".
In a submission to the
Senate inquiry into bank mergers, it has been said by the University of NSW Prof Frank Zumba that bank mergers had harmed competition and they should be unwound.
The popularity of fixed interest rates has been reduced as hopes of locking in low rates recede. According to the data that has been released by mortgage broker Mortgage Choice the demand for fixed loans fell 1% point last month to 4 per cent of loan approvals.
The ANZ is the only big four bank that have not raised fixed rates in the past fortnight but is not ruling it out.
The amount of the rise has variations. These variations depends on the length of time for which the home loan is fixed.
There has been the biggest rise in those loans that have been fixed for 15 years as these rates have been raised 0.25 % to 8.44 %.
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