According to a report from Moody’s Investors Service Home Loan interest rates are likely to increase further.
Some smaller lenders have already increased their interest rates and Moody’s are predicting the major banks will follow suit.
The belief is that the only thing stopping the major banks from increasing rates right now is they want to protect what’s left of their already bruised reputations following revelations from the Royal Commission.
The unintended consequences of tightening lending criteria and increased scrutiny of loan applications is slowing lending growth. This is good for the very few prime borrowers who the banks are fighting for but not great for the majority of applicants.
If you or someone you know is having difficulty with a loan application please contact us here and we will be happy to help where we can.