Easter bunny forgets the eggs, hands out fixed rate home loan increases

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on April 14, 2022 Fact Checked
Easter bunny forgets the eggs, hands out fixed rate home loan increases

ANZ, Westpac and a host of other lenders have hopped at the chance to hike fixed home loan rates by up to 90 basis points.

For the second time in two weeks, ANZ increased fixed home loan rates - this time by up to 60 basis points.

Fixed rate increases applied to both principal and interest (P&I) and interest only (IO) loans with loan-to-value ratios (LVR) between 80 and 90%.

Highlights of fixed rate increases across ANZ’s home loan portfolio included:

  • Residential Fixed 2 Years ≤80%: 60 basis point increase to 3.99% p.a. (3.17% p.a. comparison rate*)
  • Residential Fixed IO 2 Years ≤80%: 30 basis point increase to 4.39% p.a. (3.23% p.a. comparison rate*)
  • Investment Fixed 4 Years ≤80%: 50 basis point increase to 4.89% p.a. (4.03% p.a. comparison rate*)
  • Investment Fixed IO 4 Years ≤80%: 50 basis point increase to 4.99% p.a. (4.05% p.a. comparison rate*)

Westpac

Fresh off increasing fixed rates last week, Westpac has wasted no time in increasing rates by up to 50 basis points.

This marks the sixth fixed rate increase of the year for Westpac – the most among the big-four to date.

Westpac’s increase applies to principal and interest (P&I) and interest-only (IO) loans across Fixed, Investment Fixed and Premier Advantage products.

Key changes across Westpac’s home loan portfolio for owner-occupiers, included:

  • Fixed Options P&I 3 Years 70%: 15 basis point increase to 4.49% p.a. (4.70% p.a. comparison rate*)
  • Fixed Options IO 3 Years 70%: 30 basis point increase to 5.09% p.a. (5.29% p.a. comparison rate*)
  • Premier Advantage Fixed Options IO 3 Years 70% 150k+: 30 basis point increase to 4.79% p.a. (4.44% p.a. comparison rate*)

For investors, key increases included:

  • Investment Fixed P&I 2 Years 70%: 25 basis point increase to 4.19% p.a. (5.09% p.a. comparison rate*)
  • Investment Fixed IO 2 Years 70%: 50 basis point increase to 4.49% p.a. (5.36% p.a. comparison rate*)
  • Premier Advantage Investment Fixed P&I 2 Years 80%: 25 basis point increase to 3.99% p.a. (4.26% p.a. comparison rate*)
  • Premier Advantage Investment Fixed IO 2 Years 80%: 50 basis point increase to 4.29% p.a. (4.52% p.a. comparison rate*)

Around the grounds

A number of lenders joined ANZ and Westpac this week in increasing fixed home loan rates prior to the Easter break.

AMP Bank

Following CommBank’s lead, AMP increased fixed home loan rates by up to 90 basis points.

These increases applied across AMP’s portfolio of ‘Basic’, ‘Investment’ and ‘Professional Package’ fixed home loans.

Highlights of these increases for owner occupiers included:

  • Basic Fixed P&I 3 Years: 80 basis point increase to 4.74% p.a. (3.41% p.a. comparison rate*)
  • Basic Fixed IO 3 Years: 85 basis point increase to 4.84% p.a. (3.19% p.a. comparison rate*)
  • Basic Fixed P&I 5 Years: 75 basis point increase to 4.99% p.a. (3.80% p.a. comparison rate*)
  • Basic Fixed IO 5 Years: 80 basis point increase to 5.09% p.a. (3.61% p.a. comparison rate*)
  • Professional Package Residential Fixed P&I 3 Years ≤80%: 80 basis point increase to 4.54% p.a. (3.25% p.a. comparison rate*)
  • Professional Package Residential Fixed IO 3 Years: 85 basis point increase to 4.74% p.a. (3.26% p.a. comparison rate*)

For investors, some key increases included:

  • Investment Basic Fixed P&I 3 Years: 85 basis point increase to 4.84% p.a. (3.73% p.a. comparison rate*)
  • Investment Basic Fixed IO 3 Years: 90 basis point increase to 4.84% p.a. (3.35% p.a. comparison rate)
  • Professional Package Investment Fixed P&I 3 Years ≤80%: 85 basis point increase to 4.64% p.a. (3.27% p.a. comparison rate*)
  • Professional Package Investment Fixed IO 3 Years: 90 basis point increase to 4.74% p.a. (3.26% p.a. comparison rate*)

HSBC

In much the same vein as CommBank and AMP, HSBC increased fixed home loan rates by up to 90 basis points for both owner occupiers and investors.

Key increases included:

  • Residential Fixed P&I 5 Years 80-90%: 90 basis point increase to 5.32% p.a. (4.16% p.a. comparison rate*)
  • Home Loan Package Owner Occupier Fixed P&I 5 Years 80-90%: 90 basis point increase to 5.17% p.a. (4.06% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years 80-90%: 90 basis point increase to 5.93% p.a. (4.55% p.a. comparison rate*)
  • Investment Fixed IO 5 Years 80-90%: 90 basis point increase to 5.93% p.a. (4.50% p.a. comparison rate*)

Read more: Which lenders offer five-year fixed home loans?

Bendigo Bank

Bendigo Bank increased fixed home loan rates for owner occupiers and investors by up to 30 basis points.

Key increases across Bendigo Bank’s home loan portfolio included:

  • Complete Home Loan Fixed P&I 2 Years: 30 basis point increase to 4.29% p.a. (2.89% p.a. comparison rate*)
  • Complete Home Loan Fixed IO 2 Years: 30 basis point increase to 4.69% p.a. (3.03% p.a. comparison rate*)
  • Investment Complete Home Loan Fixed P&I 2 Years: 30 basis point increase to 4.49% p.a. (3.09% p.a. comparison rate*)
  • Investment Complete Home Loan Fixed IO 2 Years: 30 basis point increase to 4.69% p.a. (3.15% p.a. comparison rate*)

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

Variable
More details
  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws

Variable Home Loan (LVR < 70%)

  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

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 August 11, 2022. View disclaimer.


Image by Daniel K Cheung via Unsplash



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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