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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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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
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
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
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of November 27, 2021. 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 click through onto the web site links.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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