The peak body representing Australian finance and mortgage brokers has pointed to a surprise hike in interest rates by Australia’s largest member-owned bank as a further reason for borrowers to look at more finance options.

Finance Brokers Association of Australia (FBAA) Executive Director Peter White said Canstar’s admission that upward rate increases could soon be a way of life sounded a further note of caution.

“What adds further interest to these market moves is the fact that the Reserve Bank only last week said there was no strong case for an adjustment in monetary policy in the near term.”

The latest data from Canstar painted a mixed picture on the future movement of interest rates with Credit Union Australia increasing interest rates by 25 basis points on 20 different variable P&I and interest only housing products.

In all, seven lenders increased rates while some decreased rates slightly. In total, changes were made across more than 35 products. In releasing the data Canstar said increases could soon be a way of life.

Mr White, who has led the broker body for over eight years and has 37 years of industry experience, said the best way to get the right mortgage is to shop around and that’s where brokers play a crucial role.

“Interest rates can vary on a daily basis across many different loan products and it’s our job to stay on top of these market fluctuations so we can provide the best fit for clients,” he explained, pointing out that there are many other factors besides interest rates that borrowers should consider.

As the market was witnessing movement the Reserve Bank board released the minutes of its monthly meeting on monetary policy saying the current stance of monetary policy would “continue to support economic growth and allow further progress to be made in reducing the unemployment rate and returning inflation towards the midpoint of the target.”

While the official cash rate remained at its record low level of 1.5 per cent for August, the minutes stated: “… members continued to agree that the next move in the cash rate would more likely be an increase than a decrease.”