CBA hikes fixed mortgage rates, three weeks after its last increase

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on November 05, 2021 Fact Checked
CBA hikes fixed mortgage rates, three weeks after its last increase

On Friday CommBank increased fixed home loan interest rates, this time by up to 50 basis points.

Commonwealth Bank increased a whole gamut of fixed mortgage rates for both owner occupiers and investors by between 10 and 50 basis points.

The home loan to get a 50 basis point - half a percentage point - increase was the owner occupied Wealth Package paying principal and interest (P&I), fixed for four years.

It is now 2.89% p.a. (3.95% p.a. comparison rate*).

Other noteworthy increases include:

  • Residential Fixed P&I 3 Years: 40 basis point increase to 2.84% p.a. (4.25% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years: 30 basis point increase to 2.84% p.a. (4.67% p.a. comparison rate*)

Just three weeks ago, CBA increased many of the same fixed rates by 10 basis points.

These increases also come a day after Westpac increased rates on fixed home loans.

Variable rates down, fixed rates up

It's been a fairly busy week for rate changes after the RBA signalled it could increase the cash rate earlier than 2024.

On Friday AMP increased three fixed home loan rates:

  • Professional Package Residential Fixed P&I 2 Years 80%: 30 basis point increase to 2.14% p.a. (2.60% p.a. comparison rate*)
  • Professional Package Residential Fixed P&I 2 Years 90%: 30 basis point increase to 2.34% p.a. (2.88% p.a. comparison rate*)
  • Basic Fixed P&I 2 Years: 30 basis point increase to 2.34% p.a. (2.83% p.a. comparison rate*)

BCU increased a wide range of fixed home loan rates by between 5 and 20 basis points, but decreased a few of its variable 'OMG!' home loan products for owner occupiers by between 5 and 10 basis points.

Earlier in the week, Suncorp also increased fixed home loan rates by between 9 and 35 basis points while at the same time decreasing variable 'Back to Basics' home loans by between 1 and 21 basis points.

HSBC also decreased its variable home loan rate for owner occupiers to 1.97% p.a. (1.98% p.a. comparison rate*), applicable to new customers from 8 November.

"This is among the lowest variable rates we've ever offered in Australia, so provides both affordability and flexible repayment options," said Jessica Power, HSBC's Australian head of wealth and personal banking.

Fixed rates lose market lustre

The latest ABS lending indicators data shows a slight wane in the popularity of fixed mortgages.

In September, $24.64 billion in fixed mortgages were funded in the month, down from $26.79 billion in August, and from $27.45 billion in July.

This represents approximately 45.29% of the total residential mortgage market, down from 47.06% in July.


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Lender

Variable
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Variable
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Variable
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Variable
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Variable Home Loan (Principal and Interest)

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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 22, 2022. View disclaimer.


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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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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