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Big banks raise rates
The big four banks have faced fierce scrutiny from the media this week after a decision to raise interest rates despite the RBA keeping the cash rate on hold.
CBA and Westpac both raised their Standard Variable home loan rates by 10 basis points following the RBA’s announcement, whilst ANZ and NAB lifted rates by 9 and 6 basis points respectively.
In addition St George bank announced they will raise their Standard Variable home loan rate by a massive 12 basis points as of next week, saying the decision was fuelled by the importance of economic strength.
Following the RBA’s announcement last week Canstar Cannex data showed that Mutuals (credit unions, building societies and mutual banks) have an average Standard Variable home loan rate of 6.85%, compared to the big 4 bank average of 7.3%.
The banks’ decision to raise rates goes directly against the RBA’s monetary policy statement in which the RBA confirmed that they would be willing to cut the cash rate if there was an indication of the economy slowing. The raise is also concurrent with CBA’s announcement of record profits for the first half of the financial year, taking $3.57billion over the period.
Industry group Abacus says Australian Mutuals encourage unhappy bank borrowers to compare the competitive pricing and service offered by mutual banking groups such as us.
"Our (Mutuals’) average home loan rates are already 0.45% lower than the average for the big 4," said Louise Petschler, Abacus CEO. "A difference of 0.45 % can save thousands of dollars over the life of a loan – over $25,000 on an average $300,000 home loan."
As a mutual we are owned by our members and focus entirely on our members’ needs.
This allows us to offer consistently better rates than the major banks while maintaining market-leading customer satisfaction.
"Every decision and every person in the mutual sector is focused on customer needs, not external shareholders. That's how customer-owned banking can offer consistently better pricing and service in the banking market," says Petschler.
Contact us today to find out how we can help you save on your home loan.
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