Thousands of Riverina residents are set to take a financial hit after the big four banks announced another out-of-cycle increase in mortgage rates for both investment and owner-occupier loans.
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According to NAB, someone with a $300,000 loan on a 30-year term will only pay an extra $13 per month as a result of the increase.
But Riverina residents are not happy with what they perceive to be a greed-driven move by the big banks.
Among the disgruntled locals is James Van Strijp, who has six kids and is paying off his family home.
“There’s really no reason for these rises other than the banks chasing more profits,” Mr Van Strijp said.
“Obviously they need to look after their shareholders, but at the end of the day it's mum and dads and families that have to wear it.
“They already have enough safety margins on their mortgages without needing to raise rates.”
Commonwealth Bank (CBA) and ANZ announced their hikes on Friday, following the lead of Westpac and National Australia Bank (NAB).
NAB’s standard variable rate has increased from 5.25 per cent to 5.32 and CBA jumped from 5.22 per cent to 5.25.
Westpac’s rate grew from 5.29 per cent to 5.32, while owner-occupier rate rises were limited to interest-only repayments at ANZ.
Westpac-owned St George Bank also plans follow suit, it announced late on Friday.
Meanwhile, local man Peter James has conceded the rate rises could be problematic for some aspiring home owners, but said he wasn’t pushing the panic button just yet.
“Further rises would be concerning, but at least the rates are low compared to my parents’ generation,” he said.
“When they bought a house, interest rates were at about 14 per cent.”
Hume Bank chief executive David Marshall, whose institution did not raise its mortgage rates, said the increases in investment loan rates stemmed from crowded housing markets in the country’s two largest cities.
“The reality is the Sydney and Melbourne markets have a lot of heat in them at the moment,” he said.
“There’s no doubt the industry regulators are looking at putting the brakes on the investment housing market.
“But this is not purely an increase for investment properties, regular people’s mortgages repayments are being increased in the process.”
The rate hikes at NAB and Westpac took effect on Friday, while ANZ and CBA will wait until April 22 and May 8 respectively.
CBA group executive for retail banking services Matt Comyn said the increases were due to "rising costs and regulatory responsibilities".
