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Once Again Interest Rate Rise In August

Interest Rate Rise August

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Interest Rates Are Rising In August

The Reserve Bank of Australia (RBA) today decided to increase the official cash rate by 0.50% to 1.85%.

The increase follows a slightly better than expected annual inflation figure of 6.1 per cent in the June quarter and falling house prices in some eastern state cities.

Balancing out these factors is an unemployment rate of 3.5%, the lowest rate in almost 50 years.

The RBA faces a challenging period as it weighs up trying to rein in inflation against the spiralling cost of living. There are mixed factors at play, including household expenditure and overseas factors.

The size and timing of future interest rate increases will be guided by the incoming data and the board’s assessment of the outlook for inflation and the labour market,” RBA Government Philip Lowe said in his monthly statement.

That assessment is definitely more a matter of art than science, and the RBA has had a chequered history when forecasting interest rates.

Lowe acknowledges the path to achieving the balance between getting inflation down and keeping the economy on an even keel is “clouded in uncertainty” – not least because of global developments.

Adding to the complexity is lenders can set interest rates independently of RBA movements, and their responses to this official cash rate hike may vary.

Banks Are Making Billions Each Year

Banks are making billions each year as a result of the “loyalty tax” as the Reserve Bank of Australia’s (RBA) larger than normal interest rate increases are passed on to existing customers.

The RBA has increased interest rates from a record low of 0.1 per cent to 1.85 per cent since May.

The banks are offering lower interest rates to attract new customers; the experience of independent mortgage broker What If We Finance showed that while interest rate rises smash current homeowners, they could make huge savings by switching home loan providers.

What If We Finance recently saw a client offer a rate of 3.74% as an existing customer, but a new customer receives 3.14%. When pressed, the lender openly admitted to What If We Finance, we have different pricing for new business and existing customers.

The bank even had detailed sales scripting to justify the decision and their lack of loyalty to existing customers.

The behaviour can be very profitable to banks. For a $650,000 home loan, this equates to $117,000 in extra interest over the life of a 30-year loan. For every 1,000 customers, this equates to an extra $117 million in income. As you can see, this can be a very profitable business.

What If We Finance works with multiple lenders daily, so we know just how flexible they can be to keep or win your business?

It never hurts to ask the question, so get in touch to review your options.

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176 reviews on
Matthew B
Matthew B
2022-06-05
Looking at the reviews for What If We Finance, it comes at no surprise to see so many 5-stars. Spiro handled the mortgage part of my girlfriend and I purchasing our first home. He made himself available to us around the clock and ensured that we were across the entire process and felt as comfortable as possible. We're very fortunate to have gone about buying our first home with Sprio and we'd be more than happy to use him for future purchases and to refer on to family and friends. A big shout out to Agnes also who busily works away in the background and also does an incredible job. You guys are the best!
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hari gowtham
hari gowtham
2022-06-03
Very happy with the results from Spiro from start to finish. Spiro and his team are very knowledgeable and have a very quick turnaround time. Couldn't be more happier with the service. Definitely my go-to person for upcoming purchase.
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Gary Shekhter
Gary Shekhter
2022-06-02
Great broker and trustworthy. Honestly had seen 5 brokers and fund this wonderful guy. Who helped from start to finish fast and had our loan in no time at all. Thank you again champ you did an amazing job
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Leonie Kemp
Leonie Kemp
2022-05-29
Thank you Spiro and Agnes for helping with the purchase of my first home. I needed to arrange finance quickly and Spiro did a fantastic job letting me know the best options for me and pushing to get the pre-approval so I didn't miss out on purchasing my home. Everything went very smoothly, thanks for helping make my first property purchase straightforward.
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S S
S S
2022-05-28
Thank you Spiro and team for your help in financing the mortgage for the recent property purchase. Spiro provided timely advise, guided me on the process and was swift in processing the documents. His friendly attitude makes the process even better. Thank you once again.
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Anita Naughton
Anita Naughton
2022-05-27
As a first home buyer I had very limited knowledge on what I needed to do. I searched for a broker and What if we finance stood out due to reviews. I had my first session with Spiro and never looked back! The whole process was seamless, I felt supported and could always connect with Spiro when needed. Spiro and Agnes are experts in what they do and I would highly recommended anyone looking for finance to choose What if we finance. I will be a lifelong customer and look forward to buying our next house with their support.
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Mahmoud Al Kilzi
Mahmoud Al Kilzi
2022-05-25
Spiro & his team did a great job by getting my loan sorted in time. I would recommend them to family & friend. Great work guys much appreciated.
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Rebecca Zeeman
Rebecca Zeeman
2022-05-20
Spiro and Agnes provided great help and advocacy in getting us our home loan. We felt they were always available and were super efficient in getting it all done on time! The process was so simple and without stress thanks them both.
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Irish Azcuna
Irish Azcuna
2022-05-09
I can’t thank Spiro and Agnes enough for making my first home purchase so efficient, stress-free and seamless! If I could give more than 5 stars I would. As a first home buyer applying for one or the government’s schemes, my situation would have been so complicated that I never imagined being able to complete the process in such a short time. Spiro’s in-depth knowledge, invaluable and always-available support, and genuine willingness to help get me the right mortgage for my situation, made everything possible. His pragmatic advice even helped me decide on the right property for us, which would help us achieve our long-term goals. I highly recommend Spiro and his team. We will definitely engage their service again for our next property. They are the best!
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Renee Briggs
Renee Briggs
2022-05-02
Spiro is reliable, has your best interest as his top priority and is fast to get great results. We wouldn't ask anyone else for their professional opinion- Spiro is the best in the business.
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