More than two dozen lenders in Australia have confirmed they will hike mortgage rates this week, even as most major banks pass on the Reserve Bank’s 25 basis point increase, which critics argue could lead to a housing market crash. However, not all lenders have acted yet—some remain undecided or delayed their commitments. A Canstar breakdown reveals that around 60 lenders, including top institutions like Citi and HSBC Home Loans, have already locked in dates for these hikes, but a significant number of other providers, such as digital lenders and non-bank firms, are still in the process of announcing their plans. This situation highlights a growing disparity between traditional financial institutions and emerging fintech players who may lack the urgency to act. Meanwhile, Australian banks like ANZ, Commonwealth Bank, and Macquarie have already begun hiking rates, though many remain in the early stages of this wave. As the federal budget approaches, concerns over negative gearing rules and capital gains tax discounts have intensified, raising questions about whether the housing market will see a sharp decline. Some analysts believe the floodgates—opened by the RBA’s decision—to raise rates will still close before the end of the year, leaving many borrowers without immediate relief. While this situation presents challenges, it also underscores the importance of continued support for small lenders and the need for more proactive measures in the housing sector.
