With the annual inflation rate back up to 3.8% and unemployment dropping to 4.1%, most economists and traders now expect the RBA will hike the cash rate by 25 bps at next weeks monetary policy meeting.

Westpac and ANZ changed their official predictions to a hike in the immediate aftermath of Wednesday's inflation data, while 72% of cash rate futures speculators were expecting the RBA to act as of Thursday.

As far as home loan rates go however, while this week bought another scattering of fixed rate hikes, perhaps the most eye catching rate movements came from ubank and Gateway Bank, both of which cut select variable rates.

It's likely both banks will pass the rate hike (if it does end up happening) on to customers in full, but these changes suggest a shift in strategy to lure in more borrowers, particularly at Gateway where variable rates were dropped significantly

Bankwest hike fixed rates

Bankwest was the biggest name to hike fixed rates this week, putting its entire range of two-to-five-year fixed products up by 40 bps.

Its new lowest fixed owner occupier rate is 5.59% p.a. (6.57% p.a. comparison rate*) on the Complete loan fixed for one year, which is still lower than any fixed rate product available at Commonwealth Bank, owner of Bankwest.

These are all the new owner occupier P&I rates:

ProductRate change
1-year fixed (≤80% LVR)No change - 5.59% p.a (8.02% p.a comparison rate*)
1-year fixed (80–90% LVR)No change - 5.99% p.a (8.06% p.a comparison rate*)
1-year fixed (90–95% LVR)No change - 6.39% p.a (8.11% p.a comparison rate*)
1-year fixed (95–98% LVR)No change - 7.19% p.a (8.20% p.a comparison rate*)
2-year fixed (≤80% LVR)Up 40 bps to 5.74% p.a (7.80% p.a comparison rate*)
2-year fixed (80–90% LVR)Up 40 bps to 6.14% p.a (7.88% p.a comparison rate*)
2-year fixed (90–95% LVR)Up 40 bps to 6.54% p.a (7.96% p.a comparison rate*)
2-year fixed (95–98% LVR)Up 40 bps to 7.34% p.a (8.13% p.a comparison rate*)
3-year fixed (≤80% LVR)Up 40 bps to 5.99% p.a (7.66% p.a comparison rate*)
3-year fixed (80–90% LVR)Up 40 bps to 6.39% p.a (7.77% p.a comparison rate*)
3-year fixed (90–95% LVR)Up 40 bps to 6.79% p.a (7.89% p.a comparison rate*)
3-year fixed (95–98% LVR)Up 40 bps to 7.59% p.a (8.13% p.a comparison rate*)
4-year fixed (≤80% LVR)Up 40 bps to 6.09% p.a (7.52% p.a comparison rate*)
4-year fixed (80–90% LVR)Up 40 bps to 6.49% p.a (7.67% p.a comparison rate*)
4-year fixed (90–95% LVR)Up 40 bps to 6.89% p.a (7.82% p.a comparison rate*)
4-year fixed (95–98% LVR)Up 40 bps to 7.69% p.a (8.12% p.a comparison rate*)
5-year fixed (≤80% LVR)Up 40 bps to 6.19% p.a (7.42% p.a comparison rate*)
5-year fixed (80–90% LVR)Up 40 bps to 6.59% p.a (7.59% p.a comparison rate*)
5-year fixed (90–95% LVR)Up 40 bps to 6.99% p.a (7.77% p.a comparison rate*)
5-year fixed (95–98% LVR)Up 40 bps to 7.69% p.a (8.09% p.a comparison rate*)
Complete 1-year fixed (≤80% LVR)No change - 5.59% p.a (6.57% p.a comparison rate*)
Complete 1-year fixed (80–90% LVR)No change - 5.99% p.a (6.61% p.a comparison rate*)
Complete 1-year fixed (90–95% LVR)No change - 6.39% p.a (6.78% p.a comparison rate*)
Complete 1-year fixed (95–98% LVR)No change - 7.19% p.a (8.30% p.a comparison rate*)
Complete 2-year fixed (≤80% LVR)Up 40 bps to 5.74% p.a (6.53% p.a comparison rate*)
Complete 2-year fixed (80–90% LVR)Up 40 bps to 6.14% p.a (6.61% p.a comparison rate*)
Complete 2-year fixed (90–95% LVR)Up 40 bps to 6.54% p.a (6.81% p.a comparison rate*)
Complete 2-year fixed (95–98% LVR)Up 40 bps to 7.34% p.a (8.25% p.a comparison rate*)
Complete 3-year fixed (≤80% LVR)Up 40 bps to 5.99% p.a (6.56% p.a comparison rate*)
Complete 3-year fixed (80–90% LVR)Up 40 bps to 6.39% p.a (6.68% p.a comparison rate*)
Complete 3-year fixed (90–95% LVR)Up 40 bps to 6.79% p.a (6.90% p.a comparison rate*)
Complete 3-year fixed (95–98% LVR)Up 40 bps to 7.59% p.a (8.26% p.a comparison rate*)
Complete 4-year fixed (≤80% LVR)Up 40 bps to 6.09% p.a (6.58% p.a comparison rate*)
Complete 4-year fixed (80–90% LVR)Up 40 bps to 6.49% p.a (6.73% p.a comparison rate*)
Complete 4-year fixed (90–95% LVR)Up 40 bps to 6.89% p.a (6.97% p.a comparison rate*)
Complete 4-year fixed (95–98% LVR)Up 40 bps to 7.69% p.a (8.26% p.a comparison rate*)
Complete 5-year fixed (≤80% LVR)Up 40 bps to 6.19% p.a (6.61% p.a comparison rate*)
Complete 5-year fixed (80–90% LVR)Up 40 bps to 6.59% p.a (6.79% p.a comparison rate*)
Complete 5-year fixed (90–95% LVR)Up 40 bps to 6.99% p.a (7.05% p.a comparison rate*)
Complete 5-year fixed (95–98% LVR)Up 40 bps to 7.69% p.a (8.24% p.a comparison rate*)

And for investors:

ProductRate change
Investor 1-year fixed (≤90% LVR)No change - 5.79% p.a (8.61% p.a comparison rate*)
Investor 1-year fixed (90–95% LVR)No change - 6.89% p.a (8.74% p.a comparison rate*)
Investor 2-year fixed (≤90% LVR)Up 40 bps to 5.99% p.a (8.35% p.a comparison rate*)
Investor 2-year fixed (90–95% LVR)Up 40 bps to 7.19% p.a (8.60% p.a comparison rate*)
Investor 3-year fixed (≤90% LVR)Up 40 bps to 6.19% p.a (8.16% p.a comparison rate*)
Investor 3-year fixed (90–95% LVR)Up 40 bps to 7.29% p.a (8.49% p.a comparison rate*)
Investor 4-year fixed (≤90% LVR)Up 40 bps to 6.29% p.a (7.99% p.a comparison rate*)
Investor 4-year fixed (90–95% LVR)Up 40 bps to 7.39% p.a (8.40% p.a comparison rate*)
Investor 5-year fixed (≤90% LVR)Up 40 bps to 6.39% p.a (7.85% p.a comparison rate*)
Investor 5-year fixed (90–95% LVR)Up 40 bps to 7.49% p.a (8.34% p.a comparison rate*)
Investor Complete 1-year fixed (≤90% LVR)No change - 5.79% p.a (7.38% p.a comparison rate*)
Investor Complete 1-year fixed (90–95% LVR)No change - 6.89% p.a (7.50% p.a comparison rate*)
Investor Complete 2-year fixed (≤90% LVR)Up 40 bps to 5.99% p.a (7.29% p.a comparison rate*)
Investor Complete 2-year fixed (90–95% LVR)Up 40 bps to 7.19% p.a (7.53% p.a comparison rate*)
Investor Complete 3-year fixed (≤90% LVR)Up 40 bps to 6.19% p.a (7.24% p.a comparison rate*)
Investor Complete 3-year fixed (90–95% LVR)Up 40 bps to 7.29% p.a (7.57% p.a comparison rate*)
Investor Complete 4-year fixed (≤90% LVR)Up 40 bps to 6.29% p.a (7.20% p.a comparison rate*)
Investor Complete 4-year fixed (90–95% LVR)Up 40 bps to 7.39% p.a (7.62% p.a comparison rate*)
Investor Complete 5-year fixed (≤90% LVR)Up 40 bps to 6.39% p.a (7.19% p.a comparison rate*)
Investor Complete 5-year fixed (90–95% LVR)Up 40 bps to 7.49% p.a (7.68% p.a comparison rate*)

Ubank varies variable rates with some cuts

Meanwhile NAB-owned ubank adjusted its variable rates, slightly cutting rates for lower LVR borrowers and increasing them for higher.

Its lowest variable rate drops to 5.34% p.a. (5.62% p.a. comparison rate*), lower than any advertised rate at NAB.

ProductRate change
Neat Home Loan OO P&I (≤60% LVR)Down 5 bps to 5.34% p.a (5.36% p.a comparison rate*)
Neat Home Loan OO P&I (60–70% LVR)Down 5 bps to 5.34% p.a (5.36% p.a comparison rate*)
Neat Home Loan OO P&I (70–80% LVR)Down 5 bps to 5.39% p.a (5.41% p.a comparison rate*)
Neat Home Loan OO P&I (80–85% LVR)Up 5 bps to 5.94% p.a (6.96% p.a comparison rate*)
Neat Home Loan OO P&I (85–90% LVR)Up 5 bps to 6.24% p.a (6.26% p.a comparison rate*)
Flex Variable OO P&I (≤60% LVR)Down 5 bps to 5.34% p.a (5.59% p.a comparison rate*)
Flex Variable OO P&I (60–70% LVR)Down 5 bps to 5.34% p.a (5.59% p.a comparison rate*)
Flex Variable OO P&I (70–80% LVR)Down 5 bps to 5.39% p.a (5.64% p.a comparison rate*)
Flex Variable OO P&I (80–85% LVR)Up 5 bps to 5.94% p.a (6.18% p.a comparison rate*)
Flex Variable OO P&I (85–90% LVR)Up 5 bps to 6.24% p.a (6.48% p.a comparison rate*)

And for investors:

ProductRate change
Neat Home Loan Investor P&I (≤60% LVR)Down 5 bps to 5.44% p.a (5.46% p.a comparison rate*)
Neat Home Loan Investor P&I (60–70% LVR)Down 5 bps to 5.49% p.a (5.51% p.a comparison rate*)
Neat Home Loan Investor P&I (70–80% LVR)Down 5 bps to 5.54% p.a (5.56% p.a comparison rate*)
Neat Home Loan Investor P&I (80–85% LVR)Up 5 bps to 6.29% p.a (6.31% p.a comparison rate*)
Neat Home Loan Investor P&I (85–90% LVR)Up 5 bps to 6.39% p.a (6.41% p.a comparison rate*)
Flex Variable Investor P&I (≤60% LVR)Down 5 bps to 5.44% p.a (5.69% p.a comparison rate*)
Flex Variable Investor P&I (60–70% LVR)Down 5 bps to 5.49% p.a (5.74% p.a comparison rate*)
Flex Variable Investor P&I (70–80% LVR)Down 5 bps to 5.54% p.a (5.79% p.a comparison rate*)
Flex Variable Investor P&I (80–85% LVR)Up 5 bps to 6.29% p.a (6.53% p.a comparison rate*)
Flex Variable Investor P&I (85–90% LVR)Up 5 bps to 6.39% p.a (6.63% p.a comparison rate*)

Gateway Bank cut variable rates

Meanwhile Gateway Bank also cut variable rates significantly despite the economic climate.

Its new lowest variable rate is now just 5.29% p.a. (5.51% p.a. comparison rate*) for LVR up to 75% for customers who pay the annual $299 Premium Package Fee.

That's only 15 bps higher than the MOVE Everyday Home Loan, currently the lowest variable rate in the Savings.com.au database not restricted to certain borrowers.

Per the most recent APRA data, Gateway Bank holds just 0.05% of the total housing loans held by Australian ADIs - this move may suggest the bank is looking to cut its margins to grow its market share.

ProductRate change
Low Rate Essentials OO P&I (<80% LVR)Down 40 bps to 5.44% p.a (5.46% p.a comparison rate*)
Low Rate Essentials OO P&I (80–85% LVR)Down 15 bps to 5.49% p.a (5.51% p.a comparison rate*)
Premium Package OO P&I (<75% LVR)Down 20 bps to 5.29% p.a (5.58% p.a comparison rate*)
Premium Package OO P&I (75–80% LVR)Down 40 bps to 5.54% p.a (5.83% p.a comparison rate*)
Premium Package OO P&I (80–85% LVR)Down 16 bps to 5.63% p.a (5.92% p.a comparison rate*)
Premium Package OO P&I (85–95% LVR)Down 13 bps to 5.79% p.a (6.08% p.a comparison rate*)
Low Rate Essentials Investor P&I (<80% LVR)Down 7 bps to 5.69% p.a (5.71% p.a comparison rate*)
Low Rate Essentials Investor P&I (80–85% LVR)Down 7 bps to 5.88% p.a (5.90% p.a comparison rate*)
Low Rate Essentials Investor P&I (85–90% LVR)Down 132 bps to 6.03% p.a (6.05% p.a comparison rate*)
Premium Package Investor P&I (<80% LVR)Down 16 bps to 5.68% p.a (5.97% p.a comparison rate*)
Premium Package Investor P&I (80–85% LVR)Down 22 bps to 5.75% p.a (6.04% p.a comparison rate*)
Premium Package Investor P&I (85–90% LVR)Down 121 bps to 5.89% p.a (6.18% p.a comparison rate*)

Other movers

  • Great Southern Bank hiked fixed rates for one, two, and three year terms. Its new lowest owner occupier rate is now 5.59% p.a. (6.83% p.a. comparison rate*) for three years fixed.
  • Beyond Bank hiked fixed rates by up to 50 bps
  • Community First Bank and Illawarra Credit Union hiked fixed rates by 10 bps, for both owner occupiers and investors

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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.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.94% p.a.
5.98% p.a.
$2,978
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.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.89% p.a.
5.80% p.a.
$2,962
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.
 Disclosure
5.99% p.a.
6.02% p.a.
$2,995
Principal & Interest
Fixed
$0
$0
60%
  • Owner Occupier
  • Fixed 3 Years
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
  • Competitive rates to help you save
  • A Dedicated Relationship Manager
  • Certainty of repayments with a fixed rate term
 Disclosure
5.93% p.a.
5.93% p.a.
$2,975
Principal & Interest
Variable
$0
$395
70%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 30% Min Deposit
  • Redraw
  • More details
 Disclosure
More home loans
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
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