Thousands of homeowners in Australia could switch to a different mortgage provider, as they compare and consider the different rates offered by major banks, which are expected to increase.
Speculation over mortgage rate increases may result in over 30 percent of mortgage holders replacing their provider this year, said Steve Munchenberg, Chief Executive at the Australian Bankers Association.
This forecast comes after the Reserve Bank of Australia surprised everyone by maintaining the standard rate at 4.25 percent. Some experts are expecting ANZ to be the first to increase rates.
Munchenberg advised worried property owners to consult their bank before considering the options.
“Last year about one in three people switched, and that was the top end of the historical range. And this year could be even higher,” he said.
This week, Australian Treasurer Wayne Swan cautioned the country’s major lenders that they could alienate their customers if they frivolously hike up their interest rates.
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