As banks increase their rates on interest-only and investor mortgage loans, data from Canstar shows that just 15 out of 75 Australian lenders have increased their term deposit interest rates since the last official interest rate cut in August 2016. Steve Mickenbecker of Canstar says term deposit rates have fallen to an unprecedented low, and he warns that rates are unlikely to rise while inflation remains low. From The AFR:
The major banks rely on deposits for around 60 per cent of their funding, while the figures are often higher for second and third-tier lenders. But for the most part, they’re not paying much for this funding, even as the average differential on lending for mortgages swells to 350 basis points above the cash rate, a figure that’s doubled since 2007.
