Mortgage News

SMH reports the CBA has stated that the cost of funds for lending shall remain high for at least the next two years. Prior to the Global Financial Crisis, banks were paying about 10 basis points on top of short term lending rates. After the GFC hit the majors, the banks were paying upwards of 180 basis points for the same rate. So for the foreseeable future, funding and the prices of it shall remain high, as demand regathers strength and supply of funds becomes ever more liquid.

Simon Reibelt from Oasis Home Loans Northern Beaches stated that the cost of funding will impact anyone who will be entering or re-entering the market for a while still. Lending institutions shall offset the higher costs through other possible methods such as higher fees and charges and one off yearly fees, customers should always refer to the Comparison Rate for a gauge to the overall expense of that lender.