"Choice made it so simple and affordable".

Who Sets Home Loan Interest Rates?

Who increases or decreases interest rates?

Interest rates are based on decisions made by the Reserve Bank of Australia (RBA) on behalf of the Federal Government. The RBA meets every month to decide whether interest rates should be changed. Mortgage Brokers then use these decisions as a basis for setting the interest rates for their individual loan products and will usually alter interest rates a day or two after any RBA announcement.

Generally, when the economy is in a trough (that's when unemployment is high and consumer spending is low) the RBA reduces interest rates to stimulate economic activity. The reverse is the case in a 'boom' situation and rates are increased to curb inflation.

Click here to compare interest rates of home loan lenders.

Click here to contact a Choice Home Loans Consultant to help you.

First Name*:

Surname:

State*:

Postcode*:

Country

Email:

Home/Mobile Phone*:

What are you looking for?*10

Do you have any questions?

Ken Gibson is one of our many Choice brokers that can help guide you through the mortgage maze.