NSW mutual banks increase fixed home loan rates

NSW-based mutual banks such as Newcastle Permanent, G&C Mutual, and BCU increased fixed home loan rates this week.

Earlier this week Newcastle Permanent banded together with Lismore-based Summerland Credit Union opening an emergency community banking hub at Southern Cross University to allow customers to perform everyday banking, including withdrawing cash.

Other mutuals including G&C Mutual, BCU, Greater Bank and Southern Cross Credit Union also took part. 

Further, Newcastle Permanent will help fund Lifeline in transporting clothing, accessories and linen donated by Newcastle and Hunter region residents to the people of Lismore.

Newcastle Permanent increases

Australia’s second-largest customer owned institution increased fixed home loan rates this week for owner occupiers and investors by up to 20 basis points across principal and interest (P&I) and interest-only (IO) loan options.

Highlights of increases across Newcastle Permanent’s home loan portfolio included:

• Residential Fixed P&I 3 Years 95%: 10 basis point increase to 3.59% p.a. (4.12% p.a. comparison rate*)
• Residential Fixed IO 3 Years 90%: 20 basis point increase to 4.29% p.a. (4.30% p.a. comparison rate*)
• Investment Fixed P&I 3 Years 95%: 10 basis point increase to 3.79% p.a. (4.42% p.a. comparison rate*)
• Investment Fixed IO 3 Years 90%: 10 basis point increase to 3.79% p.a. (4.42% p.a. comparison rate*)
• Premium Plus Package Residential Fixed P&I 3 Years 5k+ 95%: 10 basis point increase to 3.49% p.a. (3.94% p.a. comparison rate*)
• Premium Plus Package Investment Fixed IO 3 Years 5k+ 90%: 10 basis point increase to 3.69% p.a. (4.40% p.a. comparison rate*)

G&C Mutual Bank increases

G&C Mutual increased fixed home loan rates for owner occupiers and investors by up to 80 basis points.

Highlights of increases across G&C Mutual’s home loan portfolio included:

• Residential Fixed P&I 4 Years 95%: 80 basis point increase to 3.69% p.a. (3.75% p.a. comparison rate*)
• Investment Fixed P&I 4 Years 90%: 80 basis point increase to 4.09% p.a. (4.15% p.a. comparison rate*)
• Residential Fixed IO 4 Years 95%: 80 basis point increase to 3.99% p.a. (4.03% p.a. comparison rate*)
• Investment Fixed IO 4 Years 90%: 80 basis point increase to 4.29% p.a. (4.33% p.a. comparison rate*)

BCU increases

Marking its fifth fixed home loan rate increase of the year, BCU increased rates for both owner occupiers and investors again by up to 25 basis points.

Highlights of increases across bcu’s home loan portfolio included:

• Residential Fixed P&I 3 Years 95%: 25 basis point increase to 3.19% p.a. (3.84% p.a. comparison rate*)
• Investment Fixed P&I 3 Years 95%: 20 basis point increase to 3.34% p.a. (3.99% p.a. comparison rate*)
• Residential Fixed IO 3 Years 90%: 25 basis point increase to 3.84% p.a. (4.00% p.a. comparison rate*)
• Investment Fixed IO 3 Years 89%: 20 basis point increase to 3.49% p.a. (4.03% p.a. comparison rate*)

Other customer-owned banks' increases

Heritage Bank

Heritage Bank increased rates for both owner occupiers and investors by up to 50 basis points.

Highlights of increases across Heritage Bank’s home loan portfolio included:

• Residential Fixed P&I 3 Years 90%: 45 basis point increase to 3.44% p.a. (3.13% p.a. comparison rate*)
• Investment Fixed P&I 3 Years 90%: 45 basis point increase to 3.64% p.a. (3.33% p.a. comparison rate*)
• Investment Fixed IO 3 Years 90%: 45 basis point increase to 3.74% p.a. (3.44% p.a. comparison rate*)
• Residential Fixed P&I 5 Years 90%: 50 basis point increase to 3.99% p.a. (3.49% p.a. comparison rate*)
• Investment Fixed P&I 5 Years 90%: 50 basis point increase to 4.19% p.a. (3.69% p.a. comparison rate*)
• Investment Fixed IO 5 Years 90%: 50 basis point increase to 4.29% p.a. (3.78% p.a. comparison rate*)

Great Southern Bank

Great Southern Bank increased rates for both owner occupiers and investors by up to 30 basis points.

Highlights of increases across Great Southern Bank’s home loan portfolio included:

• Fixed P&I 1 Year 95%: 30 basis point increase to 2.59% p.a. (3.70% p.a. comparison rate*)
• Investment Fixed P&I 1 Year 90%: 30 basis point increase to 2.89% p.a. (4.11% p.a. comparison rate*)
• Investment Fixed IO 1 Year 90%: 30 basis point increase to 3.09% p.a. (4.13% p.a. comparison rate*)

NAB was the only major to lift fixed home loan rates by up to 50 basis points, on the back of a revised RBA cash rate forecast.

Having initially anticipated a November cash rate increase, NAB’s forecast shifted to August fuelled by higher inflation and a lower unemployment rate.

NAB economists said the key risks for the economy have shifted significantly over the past six months or so.

“Lockdowns and border closures appear to now be in the rear-view mirror and the key uncertainty is how quickly spending patterns, international services trade and population growth normalises,” they said.

“In addition, the war in Europe looms, posing risks on both the activity and nominal sides of the economy.”

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