The Commonwealth Bank and Westpac Bank both upped their fixed-rate mortgage rates today due to higher funding costs.

CBA’s four-year fixed rate home loans rose 20 basis points, while their five-year home loan increased by 45 basis points.

Westpac has raised its one-year fixed mortgage 20 basis points and its two-year fixed rate mortgage has risen 30 basis points.

There is much speculation that interest rates offered by the banks could be as low as they will go, even if the RBA decides to futher reduce official cash rates to all time lows.

Only time will tell, but many ‘experts’ are torn between fixing rates now or waiting to see what the banks may offer over the coming months.

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CBA has passed on only 0.1% of the .25% RBA cut. It has almost certianly set the precedence that other banks will now not need to pass on the full rate cut. It will be interesting to see what ANZ, NAB and Westpac / St George decide to do.

CBA claims that although the drop is small, they are offering very good cash deposit interest rates at the moment which has seen an influx of cash depsoits to their bank, thus menaing their funding of interest payements has become more expensive.

So much for Banks working inline with the government to help the average Australian…. this days after banks stated they would work with those that lost their jobs to help defer payement on home loans to assist those while they seek for new employment. 800,000 people in Australia are predicted to loose their jobs.

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