The RBA has left the cash rate on hold at 1.50 per cent today yet as many as 362,800 home loan customers will face higher repayments this month as lenders continue to hike home loan rates out of cycle.
RateCity’s database shows 13 lenders have increased some of their home loan rates in recent weeks by as much as 40 basis points.
“Hundreds of thousands of home loan customers about to be hit with higher repayments this month, even though the RBA has left the cash rate on hold in July,” she said.
“If you take an average rate hike of 25 basis points, for a $300,000 home loan you’re looking at paying an extra $540 per year – that’s not small change.
“For the people who bought at the peak of the market and are overstretched already, they are not going to be able to find those dollars easily.
“The good news is that these hikes only apply to the variable rate customers and those borrowers can switch without having the excessive break fees that fixed rates have.
“If you are one of the many borrowers that has had their rates increased, then go and have a look at what other lenders are offering and then call your bank and tell them you want a discount.
“If they aren’t prepared to budge and waive the rate hike, then make the switch to one of those other lenders.”