The home loan in question to get hiked by 90 basis points - nearly one full percentage point - was the two-year fixed investment loan paying interest-only (IO).

It is now 4.59% p.a. (5.17% p.a. comparison rate*).

CBA sent interest rates north on a whole range of fixed home loans on Tuesday, with some key ones including:

  • Residential Fixed 2 Years P&I: Increased by 50 basis points to 3.94% p.a. (4.58% p.a. comparison rate*)
  • Residential Fixed 5 Years P&I: Increased by 20 basis points to 4.64% p.a. (4.73% p.a. comparison rate*)
  • Investment Fixed 2 Years P&I: Increased by 50 basis points to 4.14% p.a. (5.09% p.a. comparison rate*)
  • Investment Fixed 5 Years P&I: Increased by 40 basis points to 4.94% p.a. (5.19% p.a. comparison rate*)

This marks the second time in three weeks CBA raised interest rates, and the fourth for 2022.

In January, the residential two-year fixed advertised rate was 110 basis points lower at 2.84% p.a. (4.39% p.a. comparison rate*).

On the ABS-defined average home loan of $596,000, 110 basis points extra adds $363 per month in interest costs on a 30-year mortgage.

In contrast, CBA's rate-locking feature costs $500 and applies for 90 days.

Other major banks to hike recently include:

Westpac has cut five times so far this year, one or two more than the other majors.

See Also: Mortgage rates at pre-pandemic levels, average home loan size soars

CBA subsidiary also hikes

Last Tuesday CommBank's subsidiary Bankwest hiked fixed rates by up to 90 basis points.

Some key increases included:

  • Owner Occupier 1 Year 80%: 70 basis point increase to 3.29% p.a. (4.66% p.a. comparison rate*)
  • Owner Occupier 5 Years 80%: 80 basis point increase to 4.89% p.a. (4.89% p.a. comparison rate*)
  • Investor 1 Year P&I: 10 basis point increase to 3.49% p.a. (5.27% p.a. comparison rate*)
  • Investor 5 Years P&I: 90 basis point increase to 5.09% p.a. (5.35% p.a. comparison rate*)

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Rates
Features
Fees
Other
Lender
VariableMore details
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
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.
Refinance OnlyApply In Minutes

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 10, 2023. View disclaimer.



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