Today the Commonwealth Bank of Australia (CBA) increased its home loan variable interest rate by 0.1% to 5.74% even though the official cash interest rates have been falling and we are in the middle of an economic downturn and global financial crisis (also popularly known as the GFC).
It’s interesting to note that the ‘big’ banks continue to be true to form and alienate their customers, the borrowers by hiking up interest rates (and fees) when times are tough.
These sort of price hikes come about due to a lack of a real alternative in Australia to the traditional big banks…many of the smaller banks and non-bank lenders have been bought out or have effectively stopped lending.
This is a good example of why we have launched the Lending Hub Marketplace for Loans…we seek to provide ordinary individuals the way to sidestep the big institutions and lend and borrow directly person to person. Borrowers and consumers will hopefully benefit from the introduction of an alternative of to the expensive and old fashioned lenders.
Lending Hub …where ordinary people set the interest rate!