The home loan market appears to have finally taken a breath following the Reserve Bank of Australia’s (RBA) November hike,  just in time for the board’s December meeting.

The RBA board will meet on Tuesday to decide whether to hike the cash rate one last time in 2023. 

The cash rate dictates many factors, including how much banks have to pay to borrow the funds they typically provide to home loan borrowers. 

Thus, hiking the cash rate tends to result in home loan interest rates being hiked in turn. 

Read more: Home loan rate changes after the RBA's 0.25% November rise

Interestingly, however, one of Australia’s banking mainstays actually cut variable interest rates this week.

If you’re in the market for a new home loan or considering refinancing, check out the changes lenders made this week.

Bendigo Bank slashes variable rates by up to 135 basis points 

Bendigo Bank, which once marketed itself as the leading competitor to Australia’s big four banks, slashed the rates on a certain home loan product this week. 

Some of the variable rates available on the bank’s Complete Home Loan offering for borrowers with loan-to-value ratios (LVR) of 80% and over now include: 

  • Complete Home Loan, variable, principal and interest (P&I), 80%-90% LVR: 100 basis point decrease to 6.49% p.a. (6.71% p.a. comparison rate*) 
  • Complete Home Loan, variable, P&I, 90%-95% LVR: 35 basis point decrease to 7.39% p.a. (7.61% p.a. comparison rate*) 
  • Investment Complete Home Loan, variable, P&I, 80%-90% LVR: 90 basis point decrease to 6.89% p.a. (7.11% p.a. comparison rate*) 

Bendigo Bank’s moves come just a fortnight after it hiked all variable rates by 25 basis points on the back of the RBA’s latest hike. 

Which lenders hiked variable home loan rates this week?

But it wasn’t all good news for variable rate borrowers this week. 

HSBC, Unity Bank, and Australian Mutual Bank were among those hiking variable interest rates, with the trio upping its offerings by as much as 25 basis points.

HSBC hiked many of its variable home loan rates by 25 basis points, with its special offers now including:

  • Home Loan Package, variable, P&I, <60% LVR: 25 basis point increase to 6.09% p.a. (6.46% p.a. comparison rate*) 
  • Home Loan Package, variable, P&I, 60%-70% LVR: 25 basis point increase to 6.14% p.a. (6.51% p.a. comparison rate*) 
  • Home Loan Package, variable, P&I, 70%-80% LVR: 25 basis point increase to 6.19% p.a. (6.56% p.a. comparison rate*) 
  • Home Loan Package, variable, P&I, >80% LVR: 25 basis point increase to 6.49% p.a. (6.85% p.a. comparison rate*) 

Unity Bank also bolstered its offered variable home loan interest rates by up to 25 basis points this week.

The new variable rate on the bank’s standard ‘no frills’ home loan is: 

  • Advantage Home Loan Standard: 25 basis point increase to 8.59% (8.67% p.a. comparison rate*) 

Finally, Australian Mutual Bank increased its variable interest rates by 20 basis points this week. It’s standard variable rate now sits at: 

  • Standard Variable Rate Home Loan: 25 basis point increase to 6.44% p.a. (6.51% p.a. comparison rate*) 

Bank Australia also hiked many of its variable rates, along with its fixed rate offerings this week.

These lenders bolstered fixed rates this week

Bank Australia has upped a plethora of home loan rates by as much as 20 basis points, with some of its fixed rate offerings now coming in at: 

  • Basic Fixed, one year, ≤80% LVR: 15 basis point increase to 6.29% p.a. (6.26% p.a. comparison rate*) 
  • Basic Fixed, two years, ≤80% LVR: 15 basis point increase to 6.24% p.a. (6.25% p.a. comparison rate*) 

Mutual bank IMB has also hiked many of its owner-occupier fixed home loan rates, with changes including:

  • Residential, fixed, P&I, three years, ≤80% LVR: 20 basis point increase to 5.99% p.a. (6.32% p.a. comparison rate*) 
  • Residential, fixed, P&I, five years, ≤80% LVR: 10 basis point increase to 6.09% p.a. (6.32% p.a. comparison rate*) 

And finally, Unity Bank makes its second appearance in this week’s home loan rate wrap, having upped its fixed interest rates too, with changes including:

  • Advantage, P&I, fixed, one year, ≤95% LVR: 25 basis point increase to 6.89% p.a. (8.50% p.a. comparison rate*) 
  • Advantage, P&I, fixed, three years, ≤95% LVR: 15 basis point increase to 6.79% p.a. (8.14 p.a. comparison rate*) 

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.

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • 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.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • 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.
VariableMore details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

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

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
VariableMore details
Unlimited RedrawsApply In Minutes
  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Unlimited RedrawsApply In Minutes

Sucasa – Ultra Low Rate (Variable) - <95% LVR - No LMI (New Purchases)

  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 February 21, 2024. View disclaimer.

Image by Valentina Locatelli on Unsplash.





Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy