With eyes turning to another RBA cash rate rise next week, ANZ has followed the lead of ING and ME Bank cutting variable home loan rates by up to 50 basis points across its Simplicity Plus product range for new owner-occupiers and investors.
The decision to decrease variable rates comes as ANZ economists forecast the RBA cash rate to hit above 3% by the end of the year.
If a mortgage rate went from 3.00% p.a. to 5.00% p.a. on a 30-year term it would add $708 to the monthly repayment on the average home loan size.
The decrease across ANZ's Simplicity Plus product offerings applies to new mortgages with a loan-to-value ratio (LVR) of either 70 or 80%.
Highlights of this decrease include:
- Simplicity Plus P&I <70% Special Offer: 10 basis point decrease to 3.19% p.a. (3.20% p.a. comparison rate*)
- Simplicity Plus P&I 70-80% Special Offer: 25 basis point decrease to 3.29% p.a. (3.30% p.a. comparison rate*)
- Investment Simplicity Plus P&I <70% Special Offer: 40 basis point decrease to 3.54% p.a. (3.55% p.a. comparison rate*)
- Investment Simplicity Plus IO <70% Special Offer: 50 basis point decrease to 3.84% p.a. (3.66% p.a. comparison rate*)
NAB increases fixed home loans by up to 0.65% p.a.
On Friday, NAB increased fixed home loan rates by up to 65 basis points across both Tailored and Choice Package products for owner occupiers and investors.
Key changes across NAB's home loan portfolio for owner occupiers included:
- Tailored Fixed P&I 3 Years 95%: 55 basis point increase to 6.44% p.a. (6.09% p.a. comparison rate*)
- Tailored Fixed IO 3 Years 95%: 60 basis point increase to 6.79% p.a. (6.25% p.a. comparison rate*)
- Choice Package Tailored Fixed - P&I 3 Years 150k+: 55 basis point increase to 6.34% p.a. (5.88% p.a. comparison rate*)
- Choice Package Tailored Fixed - IO 3 Years 150k+: 60 basis point increase to 6.69% p.a. (6.01% p.a. comparison rate*)
For investors, key changes included:
- Investment Tailored Fixed P&I 3 Years 90%: 55 basis point increase to 6.64% p.a. (6.58% p.a. comparison rate*)
- Investment Tailored Fixed IO 3 Years 90%: 65 basis point increase to 6.74% p.a. (6.64% p.a. comparison rate*)
- Choice Package Investment Tailored Fixed - P&I 3 yrs 150k+: 55 basis point increase to 6.54% p.a. (6.36% p.a. comparison rate*)
- Choice Package Investment Tailored Fixed - IO 3 yrs 150k+: 65 basis point increase to 6.64% p.a. (6.43% p.a. comparison rate*)
NAB's increase comes following a recent speech from Reserve Bank Deputy Governor Michele Bullock, revealing the RBA has been considering how susceptible recent fixed-rate borrowers will be to higher rates when fixed terms expire.
"Unlike borrowers who hold variable-rate loans, we have very little visibility of how much saving those with fixed-rate loans have been doing in recent years," Ms Bullock said.
"In an environment of increasing interest rates, there is a risk that households with high debt-to-income ratios (DTIs) will find it more difficult to service their debt."
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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 | 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
