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.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
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5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
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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.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
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 . View disclaimer.

Image by Joan Oger on Unsplash



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