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

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.

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Refinancing

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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
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.54% p.a.	5.58% p.a.	$2,852	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.49% p.a.	5.40% p.a.	$2,836	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	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.	More details	Compare	Promoted	Disclosure
Ubank (part of NAB)	Ubank (part of NAB) Flex variable home loan - 100% offset	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable			$250	$250	60%				100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	Disclosure
Macquarie Bank	Macquarie Bank Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable			$248	$350	60%				Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Check your eligibility in as little as one minute	More details	Compare		Disclosure

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