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Home loan customers may be surprised to know that banks have not passed on all of the Reserve Bank’s cash rate rises over the past 18 months or so.

Between May 2022 and September 2023, the cash rate increased by 4.00 percentage points. However, during that same period, as this Reserve Bank graph shows:

* New variable-rate loans increased by about 3.60 percentage points
* Existing (i.e. outstanding) variable loans increased by about 3.30 points

The Reserve Bank said this reflects β€œthe effect of competition between lenders on variable-rate housing loans” and β€œthe willingness of banks to negotiate discounts to retain existing customers”.

Part of the reason banks know they have to offer reasonable interest rates is because mortgage brokers foster strong competition.

Subiaco finance brokers are here to help

Interest rate rises are here, but you don’t have to fear with the right broker on your side.

The team at Sonam Capital are here to empower you through financial knowledge. We’ll take the time to get to know you and your unique situation and speak in a language you can understand, with strategies you can implement for the best possible outcomes.

Nick, Wayne and Amanda at Sonam Capital are your Subiaco finance specialists.

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