Compared to other weeks, this past week has been relatively subdued when it comes to fixed home loan rate rises.

The big four banks have taken the week off as events in Ukraine unfold further, the US Federal Reserve hikes its own cash rate, and petrol prices surpass $2.00 per litre.

Citi increased a number of fixed home loan rates this morning, including these ones:

  • Mortgage Plus Investment Standard Fixed 2 Years: 15 basis point increase to 3.54% p.a. (3.19% p.a. comparison rate*)
  • Mortgage Plus Investment Standard Fixed 5 Years: 20 basis point increase to 4.49% p.a. (3.78% p.a. comparison rate*)
  • Mortgage Plus Standard Fixed 2 Years: 15 basis point increase to 3.24% p.a. (2.86% p.a. comparison rate*)
  • Mortgage Plus Standard Fixed P&I 5 Years: 20 basis point increase to 4.19% p.a. (3.45% p.a. comparison rate*)

These home loans are for a maximum 80% loan-to-value ratio (LVR), borrowing $350,000 or more.

NAB's acquisition of Citi's retail banking operations is expected to be formally approved by the ACCC later this month.

Compare Five-Year Fixed Home Loans

At a time when variable rates are largely heading downwards (chart below), AMP this week decided to increase rates slightly on some variable home loans.

  • Owner Occupied Professional Package 90%: Up 10 basis points to 2.54% p.a. (2.57% p.a. comparison rate*)
  • Investment Professional Package 90%: Up 10 basis points to 2.77% p.a. (2.80% p.a. comparison rate*)

These home loans are paying principal & interest for borrowings up to $500,000.

One of Australia's largest mutual bank, People's Choice Credit Union, also increased rates on a number of fixed home loans.

Noteworthy increases included:

  • Residential Fixed P&I 2 Years: 15 basis point increase to 3.09% p.a. (4.40% p.a. comparison rate*)
  • Residential Fixed P&I 5 Years: 20 basis point increase to 4.39% p.a. (4.61% p.a. comparison rate*)

These home loans are for borrowers with up to 95% LVR.

Other customer-owned banks to increase home loan rates in the past week include Unity Bank, Beyond Bank, Community First Credit Union, which increased by up to 35 basis points.

This comes after the proposed merger of Newcastle Permanent and Greater Bank got the tick of approval from the respective board members.

The merger would make the joined outfit one of the largest customer owned institutions in Australia, and now it's time for members to vote.

"Combined, Greater Bank and Newcastle Permanent have $19.8 billion in total assets and a customer base of approximately 600,000," said Jeff Eather, Newcastle Permanent's chair.

"That puts us in an incredible position to be a real challenger and remain a significant competitor in the banking sector."

Over the past 10 years the number of mutual banks has reportedly halved, with fewer than 70 existing today.

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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.

Rates
Features
Fees
Other
Lender
VariableMore details
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  • $2000 for loans up to $700,000
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Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
More details
VariableMore details
Refinance OnlyApply 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.
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Unloan – Variable Rate Home Loan – Refinance Only

  • 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.
More details
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
More details
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000

More details
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 December 2, 2023. View disclaimer.



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