Lenders waste no time in hiking mortgage rates in 2022

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on January 14, 2022 Fact Checked
Lenders waste no time in hiking mortgage rates in 2022

In the past week a number of smaller lenders increased fixed home loan interest rates, while Citi managed to cut variable rates.

The lenders to increase rates this week included Unity Bank, Greater Bank, and Gateway Bank.

Greater Bank in particular waved goodbye to what was probably the lowest home loan rate ever seen in Australia.

Larger bank Citi slashed some variable home loan rates, however.

Some highlights of the rate changes are below.

Unity Bank increases

  • 1 Year Fixed P&I: 15 basis point increase to 2.39% p.a. (4.16% p.a. comparison rate*)
  • 3 Year Fixed P&I: 15 basis point increase to 2.95% p.a. (3.99% p.a. comparison rate*)
  • 5 Year Fixed P&I: 29 basis point increase to 3.49% p.a. (4.02% p.a. comparison rate*)

Greater Bank increases

  • Great Rate Fixed 1 Year: 30 basis point increase to 1.89% p.a. (3.51% p.a. comparison rate*)
  • Great Rate Fixed 2 Years: 20 basis point increase to 2.19% p.a. (3.41% p.a. comparison rate*)
  • Great Rate Fixed 3 Years: 20 basis point increase to 2.74% p.a. (3.44% p.a. comparison rate*)
  • Investment Great Rate Fixed 1 Year: 30 basis point increase to 2.19% p.a. (3.88% p.a. comparison rate*)
  • Investment Great Rate Fixed 2 Years: 20 basis point increase to 2.49% p.a. (3.78% p.a. comparison rate*)
  • Investment Great Rate Fixed 3 Years: 20 basis point increase to 2.99% p.a. (3.78% p.a. comparison rate*)

Gateway Bank increases

  • Premium Residential Fixed 1 Year: 20 basis point increase to 2.49% p.a. (3.51% p.a. comparison rate*)
  • Premium Residential Fixed 2 Years: 10 basis point increase to 2.59% p.a. (3.46% p.a. comparison rate*)
  • Premium Residential Fixed 3 Years: 20 basis point increase to 2.89% p.a. (3.48% p.a. comparison rate*)
  • Premium Residential Fixed 5 Years: 10 basis point increase to 3.49% p.a. (3.67% p.a. comparison rate*)

Citi decreases

  • Basic Variable P&I 80%: 10 basis point cut to 2.09% p.a. (2.14% p.a. comparison rate*)
  • Investment Basic Variable IO 80%: 11 basis point cut to 2.58% p.a. (2.63% p.a. comparison rate*)
  • Investment Basic Variable P&I 80%: 28 basis point cut to 2.21% p.a. (2.26% p.a. comparison rate*)

NAB's acquisition of Citi is expected to be finalised in March.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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