For the first time in more than a decade, the RBA lifted the cash rate by 25 basis points on Tuesday.

The flow-on effects were near immediate, with the big-four flagging their intent to pass on the increase to variable rate home loans at different stages throughout the month of May. 

See more: Is your lender passing on the rate increase?

However not all fingers can be pointed to the RBA increase influencing fixed rate movement, with swap rates also a key factor. 

AMP Chief Economist Shane Oliver said fixed mortgage rates have already moved up in line with rising bond yields in anticipation of higher cash rates – doubling from record lows around 2% a year ago.

"Dwelling price growth has already started to slow, reflecting poor affordability and a sharp rise in fixed mortgage rates," Mr Oliver said. 

"Through the next year the combination of fixed rate borrowers seeing a doubling in their interest rate as their fixed terms come to an end and falling home prices exerting a negative wealth effect will start to do some of the RBA’s work for it."


Macquarie Bank 

Macquarie led from the front this week, increasing fixed home loan rates for owner occupiers and investors by up to 70 basis points.

Highlights of increases across Macquarie Bank's home loan portfolio for principal and interest (P&I) and interest only (IO) loans included:

  • Basic Fixed Owner Occupied P&I 95% 2 Years: 70 basis point increase to 5.29% p.a. (3.41% p.a. comparison rate*)
  • Basic Fixed Owner Occupied IO 80% 2 Years: 66 basis point increase to 5.15% p.a. (3.28% p.a. comparison rate*)
  • Offset Fixed Investment P&I 80% 3 Years: 60 basis point increase to 5.09% p.a. (3.40% p.a. comparison rate*)
  • Offset Fixed Investment IO 80% 3 Years: 60 basis point increase to 5.49% p.a. (3.80% p.a. comparison rate*)

Bendigo Bank

Bendigo Bank increased fixed loans for owner occupiers and investors across its 'Complete' offering by up to 50 basis points.

Key highlights for both P&I and IO loans included:

  • Complete Home Loan Fixed P&I 95% 1 Year: 50 basis point increase to 3.69% p.a. (2.67% p.a. comparison rate*)
  • Complete Home Loan Fixed IO 80% 1 Year: 50 basis point increase to 4.09% p.a. (2.83% p.a. comparison rate*)
  • Investment Complete Home Loan Fixed P&I 90% 3 Years: 25 basis point increase to 5.09% p.a. (3.41% p.a. comparison rate*)
  • Investment Complete Home Loan Fixed IO 80% 3 Years: 25 basis point increase to 5.29% p.a. (3.44% p.a. comparison rate*)

    Athena

    Digital lender Athena has passed on the 25 basis point increase across its 'Liberate', 'Evaporate' and 'Celebrate' tiered interest rate products. The digital lender has also increased fixed loans by up to 120 basis points. 

    For variable loans, highlights of these increases include:

    • Liberate Owner Occupier P&I 70-80%: 25 basis point increase to 2.24% p.a. (2.18% p.a. comparison rate*)
    • Evaporate Owner Occupier P&I 60-70%: 25 basis point increase to 2.19% p.a. (2.16% p.a. comparison rate*)
    • Celebrate Owner Occupier P&I <60% LVR: 25 basis point increase to 2.14% p.a. (2.14% p.a. comparison rate*)

    Highlights of fixed rate increases across Athena's portfolio for owner occupiers include:

    • Fixed P&I ≤60% 1 Year: 90 basis point increase to 4.29% p.a. (2.33% p.a. comparison rate*)
    • Fixed IO ≤60% 1 Year: 120 basis point increase to 4.89% p.a. (2.42% p.a. comparison rate*)
    • Fixed P&I 70-80% 3 Years: 60 basis point increase to 5.39% p.a. (2.99% p.a. comparison rate*)
    • Fixed IO 70-80% 3 Years: 100 basis point increase to 5.79% p.a. (3.08% p.a. comparison rate*)

    For investors, some key increases include:

    • Investor Fixed P&I ≤60% 3 Years: 60 basis point increase to 5.39% p.a. (3.19% p.a. comparison rate*)
    • Investor Fixed IO ≤60% 3 Years: 60 basis point increase to 5.49% p.a. (3.23% p.a. comparison rate*)

    Tic:Toc

    Tic:Toc has increased fixed home loan rates for owner occupiers and investors by up to 60 basis points. 

    Highlights of increases across Tic Toc's home loan portfolio included:

    • Live-in Fixed P&I 90% 1 Year: 60 basis point increase to 3.47% p.a. (2.04% p.a. comparison rate*)
    • Live-in Fixed IO 85% 1 Year: 60 basis point increase to 4.15% p.a. (2.96% p.a. comparison rate*)
    • Investment Fixed P&I 85% 3 Years: 34 basis point increase to 4.86% p.a. (3.36% p.a. comparison rate*)
    • Investment Fixed IO 85% 3 Years: 34 basis point increase to 4.93% p.a. (3.37% p.a. comparison rate*)

      Beyond Bank

      Beyond Bank increased fixed loans for owner occupiers and investors by up to 60 basis points. 

      Highlights of increases across Beyond Bank's home loan portfolio include:

      • Total Home Loan Package Residential Fixed P&I 90% 3 Years: 60 basis point increase to 4.19% p.a. (4.18% p.a. comparison rate*)
      • Total Home Loan Package Investment Fixed P&I 90% 3 Years: 60 basis point increase to 4.39% p.a. (4.44% p.a. comparison rate*)
      • Total Home Loan Package Investment Fixed IO 90% 3 Years: 60 basis point increase to 4.59% p.a. (4.71% p.a. comparison rate*)
      • First Home Buyers Fixed P&I 95% 3 Years: 60 basis point increase to 4.19% p.a. (4.18% p.a. comparison rate*)

      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
      LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
      6.04% p.a.
      6.06% p.a.
      $2,408
      Principal & Interest
      Variable
      $0
      $530
      90%
      Featured 4.6 Star Customer Ratings
      • No monthly or ongoing fees
      • Unlimited free redraw
      • No application fee
      5.99% p.a.
      5.90% p.a.
      $2,396
      Principal & Interest
      Variable
      $0
      $0
      80%
      Featured Apply In Minutes
      • 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.
      6.14% p.a.
      6.16% p.a.
      $2,434
      Principal & Interest
      Variable
      $0
      $250
      60%
      Featured Unlimited Redraws
      • No annual fees - None!
      • Get fast pre-approval
      • Unlimited additional repayments free of charge
      • Redraw freely - Access your additional payments when you need them
      • Home loan specialists available today
      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.

      Image by yns plt via Unsplash





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