Looming RBA rate rise could start secret mortgage discount war

An interest rate hike by Reserve Bank governor Michelle Bullock has prompted speculation the value of debt will spark a secret credit war among lenders. Mortgage market experts have revealed a secret credit war among banks could be a surprise outcome from the Reserve Bank’s next cash rate hike. Economists and market watchers are widely anticipating a 0.25 percentage point increase in the nation’s cash rate from 4.35 per cent to 4.6 per cent on September 29, the highest level since the aftermath of the global financial crisis in 2009. While it’s grim news for homeowners struggling to keep their mortgage under control, for those with the right kind of debt — banks and other lenders might be about to become surprisingly generous. RELATED: 100 Aus suburbs at risk from next rate rise Rates nightmare: Experts tip double RBA hike before Christmas One RBA decision can affect home ownership for more than a decade, research finds Real Estate Buyers Agents Association of Australia president Zoran Solano has speculated that an interest rate hike today, and the potential of another, will spark a secret rate war. Mr Solano said that with the cost of debt surging, the value of that debt would ris...