by Resi

The interest rate charged on variable rate mortgages is based on the RBA Cash Rate plus a margin. This margin includes operating costs, marketing costs, commission or salaries for sales staff, information technology costs, etc. Click here for Resi's rates and fees.

In the past, financial institutions move their rates in line with the RBA changes. However, since the credit crisis in Aug 2007, banks and non banks alike have been moving rates independently of the RBA changes. This is reflected by the greater gap  between the cash rate and the interest rate of the financial institutions.

See below for the RBA Cash rate history and movements, coupled with the banks average Standard Variable Rate and the Resi Complete home loan (click here for more). Source: RBA. For more information, click here to open up a new window for the RBA Web site, where they discuss their monetary policy. 

 

The Reserve Bank Board's decision to change interest rates is announced in a media release, which states the new target for the cash rate, together with the reasons why the Board has taken the decision to change it. This media release is distributed through electronic news services, usually at 9.30 am on the 1st Wednesday of every month. The RBA changes are as follows.

 

 
 

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Published on: 26/06/2007

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