ANZ pushes fixed home loan rates north in rate hike frenzy

ANZ pushes fixed home loan rates north in rate hike frenzy

Following CommBank's mid-week rise, ANZ closed out a busy week of fixed home loan rate movement with a number of smaller banks following suit.

Having taken a week off from home loan rate increases, CommBank returned to the fray this week increasing fixed rates by up to 25 basis points. 

ANZ took the opportunity to follow the lead of Australia's largest bank, increasing various fixed rate home loans on Friday, by up to 66 basis points.

This marks the second increase of the month for ANZ, having recently increased fixed rates by 40 basis points two weeks ago

The largest increases across ANZ's fixed home loan portfolio applied to five-year fixed rate loans for owner occupiers and investors on interest-only (IO) repayments. 

Highlights of ANZ's fixed rate home loan increase included:

  • Residential Fixed 3 Years ≤80%: 20 basis point increase to 3.74% p.a. (4.28% p.a. comparison rate*)
  • Residential Fixed IO 3 Years ≤80%: 36 basis point increase to 4.14% p.a. (4.39% p.a. comparison rate*)
  • Breakfree Residential Fixed 3 Years 80-90%: 20 basis point increase to 3.64% p.a. (3.31% p.a. comparison rate*)
  • Breakfree Residential Fixed IO 5 Years ≤80%: 66 basis point increase to 4.49% p.a. (3.57% p.a. comparison rate*)
  • Breakfree Investment Fixed IO 3 Years 80-90%: 20 basis point increase to 3.94% p.a. (3.83% p.a. comparison rate*)
  • Investment Fixed IO 2 Years 80-90%: 35 basis point increase to 3.54% p.a. (4.78% p.a. comparison rate*) 

Breakfree rate hikes come after ANZ announced it would dump the product line in March.

See Also: Is it too late to fix your home loan?

ING

ING increased a number of fixed home loan rates over the past week for both owner occupiers and investors by up to 30 basis points.

Highlights of these increases across ING's home loan portfolio included:

  • Orange Advantage Residential Fixed 3 Years ≤ 80%: 30 basis point increase to 3.49% p.a. (2.72% p.a. comparison rate*) 
  • Orange Advantage Residential Fixed 5 yrs 90-95%: 30 basis point increase to 4.54% p.a. (3.83% p.a. comparison rate*) 
  • Residential Fixed 3 Years ≤80%: 30 basis point increase to 3.59% p.a. (2.41% p.a. comparison rate*) 
  • Residential Fixed 5 Years 90-95%: 30 basis point increase to 4.64% p.a. (3.56% p.a. comparison rate*) 
  • Investment Fixed P&I 3 Years: 30 basis point increase to 3.69% p.a. (2.99% p.a. comparison rate*) 
  • Investment Fixed IO 3 Years: 30 basis point increase to 3.89% p.a. (3.10% p.a. comparison rate*) 

Suncorp

Suncorp's first substantial rate increase for the year took place this week, increasing fixed rates for both owner occupiers and investors by up to 85 basis points. 

Highlights across Suncorp's home loan portfolio included:

  • Home Package Plus P&I Fixed 3 Years: 51 basis point increase to 3.69% p.a. (3.18% p.a. comparison rate*) 
  • Investment Home Package Plus P&I Fixed 3 Years: 45 basis point increase to 3.74% p.a. (3.45% p.a. comparison rate*) 
  • Home Package Plus First Home Buyer P&I Fixed 5 yrs ≤95%: 50 basis point increase to 3.89% p.a. (3.44% p.a. comparison rate*) 

Bendigo Bank

Another with its first substantial rate increase for the year is Bendigo Bank, increasing fixed rates for owner occupiers and investors by up to 40 basis points.

Highlights across Bendigo Bank's home loan portfolio included:

  • Complete Home Loan Fixed P&I 3 Years: 35 basis point increase to 3.74% p.a. (2.83% p.a. comparison rate*) 
  • Complete Home Loan Fixed P&I 4 Years: 40 basis point increase to 3.99% p.a. (3.03% p.a. comparison rate*) 
  • Investment Complete Home Loan Fixed P&I 3 Years: 35 basis point increase to 3.94% p.a. (3.03% p.a. comparison rate*) 
  • Investment Complete Home Loan Fixed P&I 4 Years: 40 basis point increase to 4.19% p.a. (3.23% p.a. comparison rate*) 

Tic:Toc

With its last increase just two weeks ago, digital-lender Tic:Toc increased various fixed home loan rates for both owner occupiers and investors by up to 55 basis points.

Some highlights included:

  • Live-in Fixed P&I 5 Years: 35 basis point increase to 3.84% p.a. (2.67% p.a. comparison rate*) 
  • Live-in Fixed IO 5 Years: 55 basis point increase to 3.87% p.a. (3.24% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years: 35 basis point increase to 3.89% p.a. (3.27% p.a. comparison rate*)
  • Investment Fixed IO 5 Years: 35 basis point increase to 3.97% p.a. (3.28% p.a. comparison rate*)

    bcu

    Following on from a 25 basis point increase just last week, customer-owned bank bcu increased a number of fixed home loan rates for both owner occupiers and investors by up to 40 basis points.

    For the month of February, bcu has now raised fixed home loan rates three times by up to a total of 80 basis points. 

    Highlights of this increase across bcu's home loan portfolio included:

    • Residential Fixed P&I 5 Years: 25 basis point increase to 3.64% p.a. (3.89% p.a. comparison rate*)
    • Investment Fixed P&I 5 Years: 35 basis point increase to 3.84% p.a. (4.07% p.a. comparison rate*)
    • Residential Fixed IO 3 Years: 25 basis point increase to 3.59% p.a. (3.94% p.a. comparison rate*)
    • Investment Fixed IO 3 Years: 15 basis point increase to 3.29% p.a. (3.98% p.a. comparison rate*)

    Further customer-owned institutions in Qudos Bank, Citi, Greater Bank, MyState Bank, Bank First and People's Choice, all increased fixed home loan rates across their portfolios by up to 78 basis points. 

    Where are the rate cuts?

    Newcastle Permanent 

    After hiking fixed home loan rates last week by up to 60 basis points, the large customer-owned bank slashed variable home loan rates for package customers by up to 55 basis points. 

    Some highlights included:

    • Premium Plus Package Variable IO <80% 150k+ Special Offer: 55 basis point decrease to 2.69% p.a. (3.10% p.a. comparison rate*)
    • Premium Plus Package Variable P&I 80-95% 150k+ Special Offer: 32 basis point decrease to 2.89% p.a. (3.29% p.a. comparison rate*)
    • Real Deal P&I Special Offer 95% 150k+: 47 basis point decrease to 2.42% p.a. (2.46% p.a. comparison rate*)
    • Real Deal IO Special Offer 80% 150k+: 47 basis point decrease to 2.42% p.a. (2.46% p.a. comparison rate*)

    Note 'special offers' may be time-limited and could expire at any time.

    Bank Australia

    In similar fashion to Newcastle Permanent, Bank Australia slashed variable rates for owner occupiers and investors by up to 51 basis points.

    Highlights of this decrease across Bank Australia's home loan portfolio included:

    • Basic Home Loan <80%: 31 basis point decrease to 1.99% p.a. (2.03% p.a. comparison rate*)
    • Basic Home Loan <90%: 51 basis point decrease to 2.19% p.a. (2.23% p.a. comparison rate*)
    • Basic Investment Loan P&I <80%: 45 basis point decrease to 2.29% p.a. (2.33% p.a. comparison rate*)
    • Basic Investment Loan IO <80%: 41 basis point decrease to 2.49% p.a. (2.40% 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 Timur Kozmenko via Unsplash



    Latest Articles

    Collections:

    Be Savings smart.
    Subscribe for free money newsletters.

    By subscribing you agree
    to the Savings Privacy Policy