RBA hike reaction: BOQ, AMP & Athena among lenders increasing home loan rates this week
- BOQ, AMP, and Virgin Money each hiked variable home loan interest rates by up to 25 basis points on the back of the RBA's November decision
- Non-bank lenders Athena and Reduce saw their fixed rates hiked
- Tic:Toc and Adelaide bank increased fixed rates by up to 55bps
- Next week will see three of the big four banks follow suit in increasing variable rates
The RBA increased Australia’s cash rate by 25 basis points on Tuesday, lifting it to a 12-year high of 4.35%.
Since the cash rate influences how much it costs banks and lenders to access the money they hand to borrowers, it typically also influences the interest rates they offer.
The likes of Bank of Queensland and Athena have already increased their variable interest rates on the back of the hike.
But they’re not the only lenders making home loan rate waves - many others will follow suit next week.
Follow the latest changes as they happen: Home loan rate changes after RBA's 0.25% rise
Keep in mind repayments may not change for existing customers for quite a while, due to responsible lending laws dictating at least 21 days must be between the rate increase announcement and repayment changes.
If you're an existing home loan customer, keep an eye out for rate notices in your mailbox or email in the coming days if you haven't already received them.
If you’re on the market for a new home loan or considering refinancing, here are the brand new interest rates you need to know about.
BOQ, Virgin Money & AMP hike variable rates 25 basis points
BOQ and subsidiary Virgin Money were among the first lenders to action a rate hike on the back of the RBA’s November meeting.
The pair have bolstered their offered variable interest rates by 25 basis points as of this morning.
That sees BOQ’s Economy Variable principal and interest (P&I) home loan, for those with a loan-to-value ratio (LVR) of up to 80%, with an interest rate of 7.57% p.a. (7.71% p.a. comparison rate*).
AMP will also hike the variable interest rates on offer to new borrowers by 25 basis points from today.
Its Basic Package variable rate for new owner-occupier borrowers making P&I repayments with a LVR of under 80% is 7.34% p.a. (7.39% p.a. comparison rate)
Existing AMP home loan borrowers will see their rate change from Monday.
Bendigo and Adelaide stablemates increase rates by up to 55 basis points
Tic:Toc, an online lender backed by Adelaide Bank, increased its fixed home loan rates by up to 55 basis points.
Some of Tic:Toc’s new fixed rates for owner-occupiers making P&I repayments include:
- Two years fixed: 25 basis point increase to 6.38% p.a. (5.87% p.a. comparison rate*)
- Three years fixed: 45 basis point increase to 6.48% p.a. (5.95% p.a. comparison rate*)
- Four years fixed: 55 basis point increase to 6.53% p.a. (6.03% p.a. comparison rate*)
Adelaide Bank, a joint outfit with Bendigo Bank, also increased the rates on many of its fixed home loan products by up to 0.55%.
Non-banks Athena and Reduce bolster rates by as much as 55 basis points
Also roaring out of the gates after the Melbourne Cup-day rate hike was non-bank lender Athena.
It increased the variable rates on offer by the full 25 basis points, with its rates now sitting at:
- Straight Up owner-occupier, P&I, ≤80% LVR: 25 basis point increase to 6.39% p.a. (6.35% p.a. comparison rate*)
- Straight Up investor, P&I, ≤80% LVR: 25 basis point increase to 6.54% p.a. (6.48% p.a. comparison rate*)
Meanwhile, some of Reduce’s new rates for owner-occupiers making P&I repayments are:
- Home Owners Dream, two years fixed: 25 basis point increase to 6.49% p.a. (6.12% p.a. comparison rate*)
- Home Owners Dream, three years fixed: 45 basis point increase to 6.54% p.a. (6.16% p.a. comparison rate*)
- Home Owners Dream, four years fixed: 55 basis point increase to 6.64% p.a. (6.22% p.a. comparison rate*)
Bank Australia hikes fixed rates by 25 basis points
Finally, Bank Australia joined in on the rate hiking action for the second time in the last fortnight, having bolstered certain fixed rates late last month.
The latest changes include:
- Basic fixed one year, ≤80% LVR: 25 basis point increase to 6.14% p.a. (5.83% p.a. comparison rate*)
- Basic fixed two years, ≤60% LVR: 25 basis point increase to 6.09% p.a. (5.82% p.a. comparison rate*)
- Basic fixed three years, >90% LVR: 25 basis point increase to 6.54% p.a. (6.34% p.a. comparison rate*)
What’s on the cards for home loan interest rates next week?
Those keeping their eye on home loan interest rates might be in for a big week, with CommBank, NAB, and ANZ all set to hike their variable rates by the full 25 basis points next Friday.
Westpac will follow suit on 21 November.
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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 |
