NSW mutual banks increase fixed home loan rates

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on March 11, 2022 Fact Checked
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.”


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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL 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%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • 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
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 May 26, 2022. View disclaimer.


Photo by Lynda Hinton 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 visit the web site links at the bottom of this page.

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author-avatar
Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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