Sneaky Rate Hikes: Is Your Lender Behind Them?
Why Are Your Home Loan Rates Increasing?
Have you noticed your mortgage repayments creeping up—even when the Reserve Bank hasn’t announced a rate hike? You’re not imagining things. Some lenders are quietly increasing rates behind the scenes, and it’s catching many borrowers off guard.
What’s Driving These Hidden Rate Hikes?
While official cash rates set by the Reserve Bank of Australia (RBA) grab headlines, lenders have their own pricing strategies. Here’s why your lender might be hiking rates:
- Funding Costs: Banks borrow money too, and when their costs rise, they often pass it on to customers.
- Risk Management: Lenders may increase rates to protect against market volatility or anticipated economic changes.
- Profit Margins: Sometimes, it’s simply about boosting profits—especially when competition is low.
Fixed vs Variable Rates: What’s Happening?
Recently, major banks have raised fixed rates even as economists predict future rate cuts. Why? Because lenders expect short-term increases before any long-term decline. This means locking in a fixed rate today might cost more than expected.
Example:
Big four banks have pushed fixed rates above 6%, while some smaller lenders still offer rates below that threshold. This gap highlights the importance of shopping around.
How to Protect Yourself from Sneaky Rate Hikes
1. Review Your Loan Regularly
Don’t assume your lender will keep your rate competitive. Compare your current rate with market averages every 6–12 months.
2. Consider Refinancing
If your lender has increased your rate without clear justification, refinancing could save you thousands. Explore options with smaller lenders who often offer sharper deals.
3. Get Expert Advice
Mortgage brokers have access to a wide range of lenders and can help you find a better deal. At https://cbmmortgages.comCBM Mortgages, we’ll review your loan and negotiate on your behalf.
Next Steps
👉Check out our https://cbmmortgages.com/our-services/first-home-buyers/
👉 Check out our https://cbmmortgages.com/blog/
📞 Contact us today to see if you’re paying more than you should!
External Resources
Disclaimer
This article provides general information only and does not constitute financial advice. Always consult a qualified financial advisor or mortgage broker before making any financial decisions.
Written by Craig McDonald 08.10.2025
