Each year Mortgage Choice surveys its panel of Lenders to ascertain their views on factors impacting the property and mortgage market.
RBA rate rises unlikely to have major knock-on impact on fixed home mortgage rates.
– Mortgage Choice survey of key lenders predicts:
• RBA rate increases only around 0.5% for 12 months ahead
• Fixed home mortgage rate increase below 1% for the period
• Interest rates and low fees still key for consumers
• Compulsory introduction of rate comparison tables unsuccessful
• Totally on-line electronic loan lodgement still some time distant
Despite the recent rate rise and gradual increases in the RBA official rate expected during the next 12 months, the flow on to the fixed mortgage rates for home buyers for the period is expected to be less than 1% according to a survey of foremost lenders conducted by Australia’s leading mortgage broker Mortgage Choice.
All respondents to the survey of the 30 lenders on Mortgage Choice’s panel predict that both RBA official rates and fixed mortgage rates will rise.
However 60% of respondents consider that the RBA rates will only rise around 0.5% for the year ahead.
National Corporate Affairs Manager for Mortgage Choice Warren O’Rourke said today the mortgage market has seen fixed rates rise around 0.5% over recent months and “according to the lenders, this is only the beginning”.
“However, although 100% of respondents believe fixed rates will increase over the next 12 months, the good news is that they view that the average growth will be around 0.85%,” he said.
“Borrowers shouldn’t be dismayed by the recent rise in rates or forecasts of further interest rate rises, because as the survey shows, they will most likely be only between 0.5 -1% on both variable and fixed rates.”
The survey canvassed the view of the Mortgage lending panel on factors impacting on the property and mortgage market including:
• General interest rates
• Mortgage rates
• Home prices – Sydney, Brisbane, Perth, Adelaide, Melbourne
• Strength of the regional market
• Investment mortgages v’s equities market
• Top of mind factors for borrowers in their loan
• Introduction of compulsory rate comparison
• Future of on-line processing
• Refinancing and churning
• Industry regulation
