CommBank hikes fixed mortgage rates twice in three weeks

The Commonwealth Bank increased fixed home loan rates across a wide range of products by up to 90 basis points.

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 - 7 April
• ANZ and NAB - 1 April

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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