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Why Are Banks Increasing Rates?

Some lenders would have us believe increased funding costs are the main influence behind the increases, however, in the minutes of its latest monetary policy meeting, the Reserve Bank underlined:

“The increases had been mainly in response to prudential measures introduced by APRA in 2014 to slow the growth in lending to housing investors and preceded measures announced by APRA in late March to restrain the growth of interest-only lending. Funding costs had not changed significantly.”

With all the changes that have been going on it is even more important now to review your financial situation regularly. If you have not had done so, please contact us here to arrange a complimentary complete Financial Audit.

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