Lenders ramp up fixed home loan rate increases

With the big-four taking a week off from the home loan rate rise party, a number of lenders stepped up to the plate increasing their fixed home loan rates for both principal and interest (P&I) and interest-only (IO) options. 

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

AMP

Off the back of slicing term deposit rates by 55 basis points earlier in the week, AMP increased fixed home loan rates by up to 60 basis points. 

Despite lifting fixed home loan rates, AMP Chief Economist Shane Oliver recently told Savings.com.au "the real impact will come when the Reserve Bank starts raising interest rates later this year."

Across AMP's home loan portfolio, these increases included:

• Professional Package Residential Fixed P&I 3 Years ≤80%: 60 basis point increase to 3.44% p.a. (2.90% p.a. comparison rate*)
• Professional Package Residential Fixed P&I 3 Years 80-90%: 60 basis point increase to 3.64% p.a. (3.09% p.a. comparison rate*)
• Basic Fixed P&I 3 Years: 60 basis point increase to 3.64% p.a. (3.11% p.a. comparison rate*)
• Basic Fixed P&I 5 Years: 60 basis point increase to 4.04% p.a. (3.38% p.a. comparison rate*)
• Investment Basic Fixed P&I 3 Years: 60 basis point increase to 3.69% p.a. (3.41% p.a. comparison rate*)
• Investment Basic Fixed IO 3 Years: 35 basis point increase to 3.54% p.a. (3.00% p.a. comparison rate*)  

Athena

Digital-lender Athena lifted fixed home loan rates across its portfolio by up to 65 basis points.

This comes exactly a month after Athena cut variable rates for all new and existing customers for the ninth time in three years.

Across Athena's home loan portfolio, these increases included:

• Fixed P&I 3 Years ≤60%: 50 basis point increase to 3.89% p.a. (2.38% p.a. comparison rate*)
• Fixed IO 3 Years ≤60%: 40 basis point increase to 3.99% p.a. (2.42% p.a. comparison rate*)
• Fixed P&I 3 Years 70-80%: 50 basis point increase to 3.99% p.a. (2.43% p.a. comparison rate*)
• Investor Fixed IO 3 Years ≤60%: 65 basis point increase to 4.04% p.a. (2.67% p.a. comparison rate*)
• Investor Fixed P&I 3 Years ≤60%: 65 basis point increase to 3.94% p.a. (2.62% p.a. comparison rate*)

ME Bank

Coming off a fixed rate increase a little over two weeks ago, on Wednesday ME Bank lifted fixed home loan rates for owner occupiers and investors by up to 30 basis points.

Across ME Bank's home loan portfolio, these increases included:

• Flexible Fixed OO 3 Years P&I: 25 basis point increase to 3.24% p.a. (4.05% p.a. comparison rate*)
• Flexible Fixed OO 4 Years P&I: 20 basis point increase to 3.44% p.a. (4.04% p.a. comparison rate*)
• Investment Flexible Fixed 3 Years P&I: 20 basis point increase to 3.34% p.a. (4.63% p.a. comparison rate*)
• Investment Flexible Fixed 4 Years P&I: 30 basis point increase to 3.64% p.a. (4.60% p.a. comparison rate*)
• Investment Flexible Fixed 3 Years IO: 15 basis point increase to 3.49% p.a. (4.67% p.a. comparison rate*)
• Investment Flexible Fixed 4 Years IO: 20 basis point increase to 3.84% p.a. (4.67% p.a. comparison rate*)
• Member Package Flexible Fixed OO 3 Years P&I: 25 basis point increase to 3.09% p.a. (2.84% p.a. comparison rate*)
• Member Package Investment Flexible Fixed 3 Years P&I: 20 basis point increase to 3.19% p.a. (3.48% p.a. comparison rate*)

Newcastle Permanent 

The large customer-owned bank increased a number of fixed home loan rates for both owner occupiers and investors by up to 60 basis points.

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

• Residential Fixed P&I 4 Years: 30 basis point increase to 3.89% p.a. (4.17% p.a. comparison rate*)
• Residential Fixed P&I 5 Years: 40 basis point increase to 4.19% p.a. (4.26% p.a. comparison rate*)
• Residential Fixed IO 4 Years: 50 basis point increase to 4.49% p.a. (4.36% p.a. comparison rate*)
• Residential Fixed IO 5 Years: 60 basis point increase to 4.79% p.a. (4.50% p.a. comparison rate*)
• Investment Fixed P&I 4 Years: 30 basis point increase to 4.09% p.a. (4.46% p.a. comparison rate*)

bcu

Off the back of a 15 basis point increase to fixed home loan rates two weeks ago, the credit union increased fixed rates for both owner-occupiers and investors by up to 25 basis points.

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

• Residential Fixed P&I 3 Years: 25 basis point increase to 2.79% p.a. (3.73% p.a. comparison rate*)
• Residential Fixed IO 3 Years: 25 basis point increase to 3.34% p.a. (3.87% p.a. comparison rate*)
• Investment Fixed IO 3 Years: 20 basis point increase to 3.14% p.a. (3.94% p.a. comparison rate*)

Great Southern Bank

Great Southern Bank increased a number of fixed home loan rates for both owner occupiers and investors by up to 55 basis points.

Highlights of these increases across Great Southern Bank's home loan portfolio included:

• Fixed P&I 2 Years: 55 basis point increase to 2.89% p.a. (3.65% p.a. comparison rate*)
• Fixed P&I 3 Years: 50 basis point increase to 3.34% p.a. (3.70% p.a. comparison rate*)
• Investment Fixed P&I 3 Years: 50 basis point increase to 3.44% p.a. (4.04% p.a. comparison rate*)

Further customer-owned institutions in Qudos Bank, Auswide Bank, Beyond Bank, Gateway Bank all increased fixed home loan rates across their portfolios by up to 50 basis points. 

Speculation of an RBA cash rate rise later in the year could trigger further fixed rate increases.

Read more: What is a rate lock?  

Advertisement

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.

Loan purpose

Refinancing

Loan amount

Update resultsUpdate

Compare

Filters

Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Offset	Redraw	Ongoing Fees	Upfront Fees	Max LVR	Lump Sum Repayment	Extra Repayments	Split Loan Option	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Bare Home Loan (Basic OO P&I <90%)	5.94% p.a.	5.98% p.a.	$2,978	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.89% p.a.	5.80% p.a.	$2,962	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	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.	Go to site	Compare	Promoted	Disclosure
Regional Australia Bank	Regional Australia Bank Home Loan Fixed (Owner Occupier, Principal and Interest, max lvr 60%) (3 years)	5.99% p.a.	6.02% p.a.	$2,995	Principal & Interest	Fixed			$0	$0	60%				Owner Occupier Fixed 3 Years Principal & Interest 40% Min Deposit Redraw More details	Competitive rates to help you save A Dedicated Relationship Manager Certainty of repayments with a fixed rate term	Go to site	Compare	Promoted	Disclosure
Homestar	Homestar Star Nova LVR <70% (Owner Occupied, Principal and Interest)	5.93% p.a.	5.93% p.a.	$2,975	Principal & Interest	Variable			$0	$395	70%				Owner Occupier Variable Principal & Interest 30% Min Deposit Redraw More details		Go to site	Compare		Disclosure
Reduce Home Loans	Reduce Home Loans EconoME Home Loan (Owner Occupier, Principal & Interest, LVR 60%)	5.99% p.a.	6.01% p.a.	$2,995	Principal & Interest	Variable			$0	$150	60%				$3000 Cashback T&Cs apply Owner Occupier Variable Principal & Interest 40% Min Deposit Redraw More details		Go to site	Compare		Disclosure

More home loans