The week just been was a spooky one for both everyday punters (happy Halloween!) and would-be home loan borrowers.

Many banks and lenders upped their offered interest rates this week ahead of what’s widely expected to be a cash rate hike.

The Reserve Bank of Australia (RBA) board will come together for its November meeting on Tuesday.

Many economists are predicting the board will bolster the cash rate by another 25 basis points, bringing it to 4.35%, on the back of recent data on inflation, retail trade, and unemployment

Among the home loan moves and shakers this week was big four bank ANZ and banking giants ING and Macquarie, with each of the trio hiking rates on offer to new borrowers. 

There were some notable exceptions, however, as a handful of smaller banks lowered rates on certain mortgage products. 

ANZ bolstered fixed home loan rates by up to 0.35%

Taking the top spot in this week’s home loan rate wrap is the smallest of the big four banks, ANZ. 

It upped the fixed interest rates on offer to both owner occupiers and investors this week by as much as 35 basis points. 

It’s a step backwards for the banking major, which slashed fixed interest rates on many home loan products by as much as 30 basis points in September. 

The latest changes implemented by ANZ include: 

  • Residential, fixed  for 1 year, with loan-to-value ratio (LVR) of ≤80%: 35 basis point increase to 6.69% p.a. (6.96% p.a. comparison rate*) 
  • Residential, fixed for 3 years, with LVR of 80% to 90%: 30 basis point increase to 6.64% p.a. (7.03% p.a. comparison rate*) 
  • Investment, fixed for 2 years, with LVR of ≤80%: 30 basis point increase to 6.69% p.a. (7.41% p.a. comparison rate*) 

ING increases home loan rates by up to 0.4%

Iconically orange Dutch banking giant ING upped many of its home loan rates this week by as much as 40 basis points. 

It comes after the bank dropped the rates offered on some of its home loans by 30 basis points back in August. 

Owner occupiers considering signing up for a home loan with ING, borrowing upwards of $150,000 with an LVR of 80% or under, will want to know about these changes: 

  • Variable rate Mortgage Simplifier, principle and interest (P&I) repayments: 5 basis point increase to 5.89% p.a. (5.91% p.a. comparison rate*)
  • Orange Advantage Residential, 2 year fixed with P&I repayments: 20 basis point increase to 6.29% p.a. (5.99% p.a. comparison rate*)
  • Orange Advantage Residential, 4 year fixed rate with P&I repayments: 40 basis point increase to 6.39% p.a. (6.10% p.a. comparison rate*)

Macquarie Bank hikes fixed rates by as much as 0.36%

Macquarie Bank also hiked its fixed rate offerings this week, just days before it apparently disappointed investors. 

The investment banking giant, which also operates a popular retail banking brand, upped many of its fixed rate home loan products available to both owner occupiers and investors, with highlights including: 

  • Basic Owner Occupied, 2 year fixed, P&I repayments and LVR ≤80%: 20 basis point increase to 6.65% p.a. (6.11% p.a. comparison rate*) 
  • Basic Owner Occupied, 5 year fixed, P&I repayments and LVR ≤80%: 36 basis point increase to 6.75% p.a. (6.32% p.a. comparison rate*) 
  • Basic Investment, 1 year fixed, P&I repayments and LVR ≤70%: 20 basis point increase to 6.69% p.a. (6.18% p.a. comparison rate*)
  •  Basic Investment, 4 year fixed, P&I repayments and LVR ≤70%: 30 basis point increase to 6.75% p.a. (6.35% p.a. comparison rate*) 

Macquarie Group – the company behind the bank – is listed on the ASX, meaning the market gets a front row seat to its performance as a business. 

This morning, it revealed a $1.4 billion profit for the six months ended 31 September – a 51% drop on that of the prior six-month period. Though, its banking business did well, posting a 10% year-on-year increase in profits.

The Macquarie Group share price is down 0.74% at the time of writing.

Other lenders making home loan rate changes  

ANZ, ING, and Macquarie were far from alone in making home loan interest rate changes this week. Other notable changes included:

Bendigo Bank dropped the interest rate offered on its variable Complete Home Loan product by 10 basis points for borrowers with an LVR of between 60% and 80% – it now offers a 5.99% p.a. interest rate (6.21% p.a. comparison rate*). 

AMP Bank also joined in on the action, shaking up its variable home loan offerings by as much as 30 basis points. Changes include: 

  • Professional Package, owner occupied, P&I repayments, ≤60% LVR, borrowing between $100,000 and $499,000: 20 basis point increase to 6.69% p.a. (7.03% p.a. comparison rate*)
  • Professional Package, investment, P&I repayments, 80% to 90% LVR, borrowing between $500,000 and $1 million: 25 basis point decrease to 6.41% p.a. (6.76% p.a. comparison rate*) 

RACQ Bank increased many of its variable Fair Dinkum Home Loan rates by 10 basis points and upped most of its fixed rate offerings by up to 25 basis points. 

And finally, ME Bank lowered the interest rates on some of its Member Package Flexible Home Loans by 14 basis points.


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Lender

VariableMore details
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4.6 Star Customer RatingsIncludes Nov RBA Rate Increase

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  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset
VariableMore details
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  • 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
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
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 November 29, 2023. View disclaimer.

Image by Jonny Caspari on Unsplash.

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