Macquarie and Bendigo Bank headline busy week of fixed home loan rate hikes

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on May 06, 2022 Fact Checked
Macquarie and Bendigo Bank headline busy week of fixed home loan rate hikes

Fixed home loan rates were not immune to the hiking frenzy this week with Macquarie and Bendigo leading the charge.

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.

      Lender

      Variable
      More details
      UNLIMITED REDRAWSSPECIAL OFFER
      • Fast turnaround times, can meet 30-day settlement
      • For purchase and refinance, min 20% deposit
      • No ongoing or monthly fees, add offset for 0.10%
      UNLIMITED REDRAWSSPECIAL OFFER

      Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

      • Fast turnaround times, can meet 30-day settlement
      • For purchase and refinance, min 20% deposit
      • No ongoing or monthly fees, add offset for 0.10%
      Variable
      More details
      AN EASY DIGITAL APPLICATION
      • No ongoing fees - None!
      • Unlimited additional repayments
      • Easy online application, find out if you're approved quick!
      • Redraw- Access your additional payments if you need them
      • Use the app to get loan insights to help you pay off your home loan faster
      AN EASY DIGITAL APPLICATION

      Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

      • No ongoing fees - None!
      • Unlimited additional repayments
      • Easy online application, find out if you're approved quick!
      • Redraw- Access your additional payments if you need them
      • Use the app to get loan insights to help you pay off your home loan faster
      Variable
      More details
      100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services
      100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

      Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services
      Variable
      More details
      NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services
      NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

      Variable Home Loan (Principal and Interest)

      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services

      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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 May 26, 2022. View disclaimer.


      Image by yns plt via Unsplash

      Disclaimers

      The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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      Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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