32 percent, Canada Goose Outlet a move that analysts said could

November 28, 2013

Australia’s NAB hikes home loan rate

SYDNEY, March 16 (Reuters) National Australia Bank became the first of the country Big Four lenders to raise mortgage rates on Thursday, a move that in part will be welcomed by regulators canada goose black friday sale desperate to cool runaway real estate prices.

NAB, Australia No.4 lender by market value, raised interest rates on Canada Goose Jackets residential investment loans by 25 basis points to 5.80 percent to clamp down on the growth in the segment, it said in a statement.

But canadian goose jacket it also raised owner occupier loans by 7 cheap Canada Goose basis points to 5.32 percent, Canada Goose Outlet a move that analysts said could draw flak from consumers and politicians.

Earlier this week, a senior central banker signalled regulators canada goose store were ready to impose tighter lending restrictions to ward off canada goose coats risks in a housing market that has seen prices grow at their fastest since 2010.

Home prices canada goose factory sale in major cities jumped 11.7 percent in the year through February, while in Sydney they have shot https://www.salecanadagooseoutlets.com/ up 18.4 percent.

major surprise canada goose was the increase in owner occupier rates, coming at a time when consumer spending is relatively weak, said Shane Oliver, buy canada goose jacket head of investment strategy at AMP Capital.

Oliver said there was a danger that higher home loan rates for owner occupiers could weaken the economy to a point that the central bank is canada goose clearance forced, reluctantly, to cut the policy rate already at a record low.

we see a few more of these out of cycle rate hikes it could contribute to another rate cut by the RBA.

The Reserve Bank of Australia (RBA) kept its buy canada goose jacket cheap policy rate at 1.50 percent for an eighth straight month in March and has signalled a steady outlook for the year ahead.

RBA governor Philip Lowe recently spoke about the danger of a debt Canada Goose online fuelled boom and bust, adding further interest rate cuts would not be in the national interest.

But an increase in official cash rates is Canada Goose Parka also undesirable as the economy still needs support with the jobless rate at a 13 month canada goose uk black friday peak and wage growth at its weakest in nearly two decades.

For banks, rising cost of borrowing, stiff lending competition and onerous regulations mean they are forced to push interest rates higher to protect their profitability.

are trying to get it across to politicians and the public that higher regulatory requirements come canada goose coats on sale at a canada goose uk outlet cost and banks are going to use their repricing powers to limit their damage, said Morningstar analyst David Ellis.

HOT PROPERTY MARKET The value of home loans cheap canada goose uk rose 1.5 percent in January to stand 11 Canada Goose sale percent up annually, latest data showed. Growth was largely driven by a 4.2 percent jump in the value of loans to investors in January alone, with the annual pace surging 27.5 percent.

It is this boom in investment home lending that regulators want to contain.

Already, the major Canada Goose Online banks share of new mortgages written has sunk to 65.25 percent from a peak of 72.2 percent in August.

the major banks lose market share at this high end of the cycle they are actually doing themselves a favour. So if and Canada Goose Coats On Sale when the housing cycle turns down they won be stuck with a lot of these more risky home loans, Ellis added.

On uk canada goose Wednesday, Commonwealth Bank of Australia, the nation largest canada goose uk shop mortgage provider, and its subsidiary Bankwest Canada Goose Black Friday said they will raise interest rates and toughen lending conditions for investment property buyers.

Westpac and canada goose clearance sale ANZ declined to comment on the future course uk canada goose outlet of rate action, while CBA could not immediately be reached. (Additional reporting by Wayne Cole and Cecile Lefort; Editing by Simon Cameron Moore).

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