Mortgage movement sees lenders continue to hike fixed rates, slash variable rates

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on November 19, 2021 Fact Checked
Mortgage movement sees lenders continue to hike fixed rates, slash variable rates

Over the past week, fixed interest rates have spiked by up to 57 basis points on some home loans while variable rates were cut by up to 26 basis points.

An ongoing trend has emerged as many lenders continue hiking fixed interest rates while cutting variable interest rates on mortgages.

For example, Great Southern Bank hiked fixed rates by up to 57 basis points while simultaneously cutting its variable rates by up to 20 basis points.

To give you a clear snapshot of the fixed and variable interest rate movement over the past week, these have been separated.

Fixed interest rate movement

Great Southern Bank increased a number of its owner occupier and investor fixed interest rates by up to 57 basis points:

  • Fixed P&I 2 years: 40 basis point increase to 2.34% p.a. (3.55% comparison rate)
  • Fixed P&I 3 years: 57 basis point increase to 2.59% p.a. (3.51% comparison rate)
  • Investment Fixed Interest Only (IO) 2 years: 50 basis point increase to 2.79% p.a. (3.98% comparison rate)
  • Investment Fixed IO 3 years: 54 basis point increase to 2.99% p.a. (3.92% comparison rate)

86 400 also raised its fixed interest rates by up to 55 basis points, including:

  • Own Home Loan Fixed IO 5 yrs: 55 basis point hike to 3.59% p.a. (3.03% comparison rate)
  • Own Home Loan Fixed P&I 3 yrs 80-85%: 50 basis point hike to 2.99% p.a. (3.08% comparison rate)
  • Own Home Loan Fixed P&I 5 yrs 80-85%: 50 basis point hike to 3.49% p.a. (3.32% comparison rate)

UBank increased fixed interest rates by 40 basis points on a number of its mortgages:

  • UHomeLoan Fixed IO 5 yrs: 40 basis point increase to 3.14% p.a. (2.58% comparison rate)
  • UHomeLoan Fixed IO 5 yrs 80-85%: 40 basis point increase to 3.34% p.a. (2.76% comparison rate)
  • UHomeLoan Fixed P&I 5 yrs: 40 basis point increase to 2.99% p.a. (2.53% comparison rate)

Variable interest rate movement

Great Southern Bank decreased its variable interest rates by up to 20 basis points:

  • Basic Variable P&I ≤80%: 20 basis point drop to 2.19% p.a. (2.24% comparison rate)
  • Offset Variable P&I ≤80%: 15 basis point drop to 2.39% p.a. (2.44% comparison rate)

IMB also decreased its variable rates by up to 26 basis points:

  • Essentials Home Loan P&I ≤70%: 26 basis point decrease to 2.43% p.a. (2.57% comparison rate)
  • Investment Essentials Home Loan P&I ≤80%: 20 basis point decrease to 2.78% p.a. (2.97% comparison rate)

Other notable mortgage activity

A number of lenders also increased their fixed home loan interest rates, including Westpac and its subsidiaries BankSA, Bank of Melbourne and St George all hiking by up to 40 basis points.

Auswide also increased some home loan rates by 20 basis points.

While most lenders have hiked their fixed rates, there were a few select lenders that actually dropped their fixed interest rates this week.

For example, Summerland Credit Union decreased its fixed interest rates by up to 20 basis points.

Additionally, Gateway Bank increased and decreased its fixed interest rates by up to 34 basis points and 20 basis points respectively.


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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
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

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

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

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

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
NO UPFRONT OR ONGOING 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
NO UPFRONT OR ONGOING 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 November 27, 2021. View disclaimer.


Image by Joan Oger on Unsplash

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 click through onto the web site links.

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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