With the dust of another RBA cash rate rise well and truly settled, ING and ME Bank have become the first lenders post-RBA decision to decrease variable home loan rates by up to 15 basis points. 

The decision to decrease variable home loan rates comes as a flurry of banks including Westpac hiked fixed home loan rates over the past week. 

ME Bank

For ME Bank, variable rate decreases apply solely to owner-occupiers with principal and interest (P&I) loans across both Basic Home Loan and Member Flexible Package products. 

Changes across ME Bank's home loan portfolio for owner-occupiers included:

  • Basic Home Loan Owner Occupier P&I <80% 150k+: 15 basis point decrease to 3.14% p.a. (3.17% p.a. comparison rate*)
  • Member Package Flexible Home Loan P&I 50-60%: 5 basis point decrease to 3.29% p.a. (3.73% p.a. comparison rate*)
  • Member Package Flexible Home Loan P&I 70-80%: 5 basis point decrease to 3.39% p.a. (3.83% p.a. comparison rate*)

ING

Variable rate decreases for ING applied to both owner-occupiers and investors with principal and interest (P&I) and interest-only (IO) loans across Orange Advantage and Mortgage Simplifier products. 

This comes following the decision from ING to increase variable home loan rates by 50 basis points for new and existing customers on 12 July. 

Key changes across ING's home loan portfolio included:

  • Mortgage Simplifier P&I 500-999k 80%: 15 basis point decrease to 3.19% p.a. (3.22% p.a. comparison rate*)
  • Mortgage Simplifier IO 500-999k 80%: 10 basis point decrease to 3.84% p.a. (3.86% p.a. comparison rate*)
  • Investment Mortgage Simplifier P&I 500k+ 80%: 10 basis point decrease to 3.44% p.a. (3.47% p.a. comparison rate*)
  • Orange Advantage Variable P&I 500-999k 80%: 15 basis point decrease to 3.34% p.a. (3.67% p.a. comparison rate*)
  • Orange Advantage Variable IO 500-999k 80%: 10 basis point decrease to 3.99% p.a. (4.31% p.a. comparison rate*)
  • Investment Orange Advantage Variable P&I 500k+ 80%: 10 basis point decrease to 3.59% p.a. (3.91% p.a. comparison rate*)

Fixed home loan rate changes

Westpac increases fixed loans by up to 0.60%

Maintaining top-spot among the big-four with the greatest number of fixed rate increases to date in 2022, Westpac has once again increased fixed rate home loans this week.

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

Highlights of changes across Westpac’s home loan portfolio included:

  • Fixed Options P&I 2 years 95%: 60 basis point increase to 5.69% p.a. (5.94% p.a. comparison rate*)
  • Fixed Options IO 2 years 80%: 30 basis point increase to 5.99% p.a. (6.47% p.a. comparison rate*)
  • Premier Advantage Fixed Options P&I 2 years 95%: 60 basis point increase to 5.49% p.a. (5.10% p.a. comparison rate*)
  • Investment Fixed P&I 4 years 80%: 60 basis point increase to 6.29% p.a. (6.48% p.a. comparison rate*)
  • Investment Fixed IO 4 years 70%: 50 basis point increase to 6.49% p.a. (6.72% p.a. comparison rate*)
  • Premier Advantage Investment Fixed P&I 4 years 80%: 60 basis point increase to 6.09% p.a. (5.81% p.a. comparison rate*)

ubank increases fixed loans by up to 0.95%

Digital lender ubank increased fixed rate home loans this week across P&I and IO loan options for both owner occupiers and investors.

Key changes across ubank's home loan portfolio included:

  • Own Home Loan Fixed P&I 1 year 80%: 95 basis point increase to 4.69% p.a. (3.78% p.a. comparison rate*)
  • Own Home Loan Fixed IO 1 year 80%: 95 basis point increase to 5.33% p.a. (3.83% p.a. comparison rate*)
  • Investment Own Home Loan Fixed P&I 3 years 80%: 56 basis point increase to 5.79% p.a. (4.36% p.a. comparison rate*)
  • Investment Own Home Loan Fixed IO 3 years 80%: 60 basis point increase to 6.23% p.a. (4.45% p.a. comparison rate*)

Teachers Mutual Bank increases fixed loans by up to 1.50%

Teachers Mutual Bank has increased fixed rate home loans this week across Your Way products for owner occupiers and investors.

Highlights of these increases across the mutual bank's portfolio included:

  • Your Way P&I Fixed 5 years 90%: 150 basis point increase to 7.64% p.a. (6.37% p.a. comparison rate*)
  • Your Way IO Fixed 5 years 90%: 150 basis point increase to 8.04% p.a. (6.52% p.a. comparison rate*)
  • Investment Your Way P&I Fixed 5 years 90%: 150 basis point increase to 7.94% p.a. (6.69% p.a. comparison rate*)
  • Investment Your Way IO Fixed 5 years 90%: 150 basis point increase to 8.34% p.a. (6.84% p.a. comparison rate*)

UniBank and Firefighters Mutual which are a division of Teachers Mutual Bank also increased fixed rate home loans this week by up to 1.50%. 

Australian Mutual Bank increases fixed loans by up to 1.00%

Australian Mutual Bank has increased fixed rate home loans this week across products for first home buyers, owner occupiers and investors.

Key changes across the mutual bank's portfolio with included:

  • First Home Buyer Fixed 2 years 95%: 100 basis point increase to 5.68% p.a. (3.33% p.a. comparison rate*)
  • Residential Fixed 2 years 95%: 100 basis point increase to 5.78% p.a. (3.38% p.a. comparison rate*)
  • Investment Fixed P&I 2 years 95%: 100 basis point increase to 6.13% p.a. (3.86% p.a. comparison rate*)
  • Investment Fixed IO 2 years 95%: 100 basis point increase to 6.33% p.a. (3.78% p.a. comparison rate*)

Other banks and mutuals including St George, Bank of Melbourne, Bank of us, Heritage Bank, and Move Bank all increased fixed home loan rates in the past week. 


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