Banks hike fixed-rate mortgages on Trump effect

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The AFR is reporting mortgage rate hikes:

Firstmac, the nation’s biggest non-bank lender, and nine other smaller lenders are discreetly raising fixed-rate mortgages by up to 45 basis points in a move expected to be followed by others as the “Trump effect” begins to bite local borrowers, according to lenders and market analysts.

“International funding costs are rising, which is the fallout from the ‘Trump effect‘,” said Martin North, principal of Digital Finance Analytics, a consultancy to financial service companies, about the impact on the cost of capital if President-elect Donald Trump goes ahead with proposed tax cuts and infrastructure spending. “Other lenders are likely to follow,” Mr North said.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.