CommBank, Macquarie hike fixed home loan rates

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on March 25, 2022 Fact Checked
CommBank, Macquarie hike fixed home loan rates

Following Westpac's decision to lift rates, CommBank and Macquarie followed suit raising fixed home loan rates by 30 basis points.

Westpac's hike of fixed home loan rates by 30 basis points on Thursday was largely replicated by Australia's largest bank on Friday.

CommBank increased a range of loans across its 'Residential Fixed', 'Investment Fixed' and 'Wealth Package' portfolio for both owner occupiers and investors. 

CommBank previously hiked fixed home loan rates twice last month, making this increase the third of the year. 

All fixed rate increases applied to both principal and interest (P&I) and interest only (IO) loans with a maximum loan-to-value ratio (LVR) of 95%. 

Highlights of fixed rate increases across CommBank's home loan portfolio included:

  • Residential Fixed P&I 4 Years: 30 basis point increase to 4.14% p.a. (4.56% p.a. comparison rate*)
  • Residential Fixed IO 4 Years: 30 basis point increase to 4.64% p.a. (4.72% p.a. comparison rate*)
  • Investment Fixed P&I 4 Years: 30 basis point increase to 4.34% p.a. (5.00% p.a. comparison rate*)
  • Investment Fixed IO 4 Years: 30 basis point increase to 4.64% p.a. (5.10% p.a. comparison rate*)
  • Wealth Package Residential Fixed P&I 4 Years 150k+: 30 basis point increase to 3.99% p.a. (4.32% p.a. comparison rate*)
  • Wealth Package Investment Fixed P&I 4 Years 150k+: 30 basis point increase to 4.19% p.a. (4.76% p.a. comparison rate*)

In similar fashion to Westpac, CommBank also took the scissors to variable rates, slashing its 'Extra' home loan offerings by 10 basis points.

These changes included:

  • Extra P&I <70%: 10 basis point decrease to 2.19% p.a. (2.20% p.a. comparison rate*)
  • Extra P&I 70-80%: 10 basis point decrease to 2.29% p.a. (2.30% p.a. comparison rate*)
  • Extra IO <70%: 10 basis point decrease to 2.75% p.a. (2.41% p.a. comparison rate*)
  • Extra IO 70-80%: 10 basis point decrease to 2.85% p.a. (2.51% p.a. comparison rate*)

Read more: Should you lock in your home loan rate?

Macquarie Bank

Macquarie Bank increased a raft of fixed rate home loans for owner occupiers and investors by up to 115 basis points.

Recently, Macquarie Bank staked its claim for the big-four to become the 'big-five', reaching a market capitalisation of $164 billion exceeding the likes of NAB, Westpac and ANZ. 

Key increases across Macquarie Bank's home loan portfolio included:

  • Basic Fixed Owner Occupied P&I 70% 2 Years: 105 basis point increase to 3.79% p.a. (2.46% p.a. comparison rate*)
  • Basic Fixed Owner Occupied P&I 95% 4 Years: 85 basis point increase to 5.19% p.a. (3.73% p.a. comparison rate*)
  • Basic Fixed Owner Occupied IO 70% 2 Years: 115 basis point increase to 4.19% p.a. (2.86% p.a. comparison rate*)
  • Basis Fixed Owner Occupied IO 70% 4 Years: 65 basis point increase to 4.79% (3.30% p.a. comparison rate*)
  • Basic Fixed Owner Occupied IO 80% 2 Years: 115 basis point increase to 4.49% p.a. (3.17% p.a. comparison rate*)
  • Basic Fixed Investment IO 70% 2 Years: 110 basis point increase to 4.19% p.a. (2.86% p.a. comparison rate*)
  • Basic Fixed Investment IO 80% 4 Years: 50 basis point increase to 5.09% p.a. (3.61% p.a. comparison rate*)

Around the grounds

Another challenger lender in ING hiked fixed home loan rates this week.

ING increased rates both owner occupiers and investors by up to 25 basis points.

Notable changes across ING's home loan portfolio included:

  • Orange Advantage Residential Fixed 5 Years ≤ 80%: 25 basis point increase to 4.24% p.a. (3.29% p.a. comparison rate*) 
  • Orange Advantage Residential Fixed 5 Years 90-95%: 25 basis point increase to 4.79% p.a. (3.64% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years: 25 basis point increase to 4.44% p.a. (3.49% p.a. comparison rate*)

Other banks to vary rates this week included Greater Bank, Suncorp, Bank SA, Bank Australia, Illawarra Credit Union and Summerland Credit Union.


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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 26, 2022. View disclaimer.


Image by Wikimedia Commons 

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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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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