The Australian Securities and Investments Commission (ASIC) have released a calculator that helps you compare your current home loan situation with taking out a new home loan.
When the Reserve Bank of Australia increased cash rates by 0.25% on Melbourne Cup Day 2 November the Commonwealth Bank immediately responded by increasing its standard loan rates by 0.45% to the fury of Australians everywhere. ING Direct responded by immediately offering $1,000 to anyone who refinanced their mortgage through them before 30 June 2011 if you registerd by 30 November 2010. The remaining banks waited for the furore to die down before announcing that they too were increasing rates by greater than the RBA 0.25%. Here are the rate increases by the Big Four Banks and ING Direct.
ING Direct are offering a $1,000 incentive to switch your home loan to ING Direct. You must register your interest before 30 November 2010 and complete any refinance by 30 June 2011. Click here for more details.
Are you worried about the increases in home loan mortgage rates? Are you considering switching to a fixed mortgage?
Given the recent trend of home loan interest rate rises, many home owners may be considering switching to a fixed rate home loan. Home owners are facing a similar situation as they did approaching the Federal elections in 2007. At that time the mortgage rates increased rapidly and many opted to switch to a fixed rate loan only to see the RBA rapidly cut rates due to the global financial crisis. Many borrowers who did fix were left with monthly repayments substantially higher than variable rate repayments. Now the RBA is trying to fight inflation, house pricing bubbles and bring rates up from historically low rates.
As was expected the Reserve Bank of Australia (RBA) increased interest rates by 0.25% to make the cash rate 4.00%. With most banks looking as though they will pass on the same sized increase this time, the increase in monthly repayments per $100,000 borrowed will be just over $15 per month. For those with an …