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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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
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of January 17, 2022. View disclaimer.


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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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