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Home loans then and now: How interest rates compare to a year ago

2021 was an interesting year for home loan interest rates, with many of them heading only in one direction - up.

First published on 07 Jan 2022

Home loans then and now: How interest rates compare to a year ago

2020 saw many lenders, particularly the major banks, cut fixed interest rates on home loans to the lowest ever levels, while in 2021, these home loan rates slowly made their way back up.

The big four banks in CommBank, Westpac, NAB and ANZ were some of the first to cut below the 2.00% threshold following the Reserve Bank's November 2020 historic rate cut.

Now the majors nary offer a home loan rate under this threshold.

How much have home loan rates increased in the past year?

Savings.com.au used the trusty screen scraping website Wayback Machine for a look at lenders' home loan rate pages from a year ago compared to now.

Many of the big four banks' largest rate increases applied to owner occupied home loans with fixed rates between two and five years.

CommBank rate increases

CBA's four year fixed rate paying principal & interest (P&I) for owner occupiers compared to a year ago is now 135 basis points higher.

It is now 3.49% p.a. (4.34% p.a. comparison rate*).

Other fixed interest rates are now between 35 and 60 basis points higher.

The standard variable rate remains unchanged at 4.55% p.a. (4.70% p.a. comparison rate*).

On a $400,000 home loan over 30 years, a 135 basis point increase in this instance means $287 per month more in interest paid.

Westpac rate increases

Westpac went in much the same direction.

In January last year, the four-year fixed rate owner occupied home loan paying P&I up to 70% LVR was 130 basis points lower than it is now.

It is now 3.39% p.a. (4.25% p.a. comparison rate*).

Other fixed terms across owner occupier loans were increased by between 35 and 120 basis points.

The standard variable rate - Westpac calls it a reference rate - remains unchanged at 4.58% p.a. (4.72% p.a. comparison rate*).

On a $400,000 home loan over 30 years, a 130 basis point increase in this instance means $275 per month more in interest paid.

NAB rate increases

There's a pattern emerging - four year fixed rates bore the brunt of increases.

NAB's owner occupied Tailored 4 Year Fixed home loan paying P&I is now 126 basis points higher than it was a year ago.

It's now 3.34% p.a. (4.13% p.a. comparison rate*).

Other fixed rates were increased by between 25 and 95 basis points.

NAB's 'base variable rate' was tinkered ever so slightly - the comparison rate is up 4 basis points, and is now 3.45% p.a. (3.49% p.a. comparison rate*).

This is indicative of slightly higher fees.

On a $400,000 home loan over 30 years, a 126 basis point increase in this instance means $266 per month more in interest paid.

ANZ rate increases

Much of ANZ's website data on interest rates from a year ago is unavailable on the Wayback Machine.

Many instances say 'No data found'. Cheeky.

Other banks and lenders

Comparing how your lender or bank fares compared to a year ago is simple - find the webpage of all of its home loan rates, and copy/paste it into the Wayback Machine URL finder.

Why the increase in home loan rates?

Through 2021 Savings.com.au covered the various reasons as to why banks and lenders are increasing their home loan rates - particularly on fixed terms:

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Loan purpose

Loan amount

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.54% p.a.	5.58% p.a.	$2,852	Principal & Interest	Variable	$0	$530	90%	Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.49% p.a.	5.40% p.a.	$2,836	Principal & Interest	Variable	$0	$0	80%	Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	No application or ongoing fees. Annual rate discount Unlimited redraws & additional repayments. LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	More details	Compare	Promoted	Disclosure
Ubank (part of NAB)	Ubank (part of NAB) Flex variable home loan - 100% offset	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable	$250	$250	60%	100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	Disclosure
Macquarie Bank	Macquarie Bank Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable	$248	$350	60%	Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Check your eligibility in as little as one minute	More details	Compare		Disclosure

Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

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Harrison Astbury

Harrison is Savings.com.au's Assistant Editor, and also Editor & Research Analyst of sister comparison site InfoChoice.com.au. He is also the co-host of the Savings Tip Jar podcast alongside Dominic Beattie. Prior to joining the group in 2020, Harrison has since 2015 been lending his expertise to other publications in mining, financial comparison, and traditional newspaper media.

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We strive to cover a broad range of products, providers, and services; however, we do not cover the entire market. Products in our comparison tables are sorted based on various factors, including product features, interest rates, fees, popularity, and commercial arrangements.

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Comparison Rate Warning and Base Criteria

For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

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Learn more about how we manage conflicts of interest.

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Home loans then and now: How interest rates compare to a year ago