What happened to home loan rates this week?

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on February 11, 2022 Fact Checked
What happened to home loan rates this week?

Tic:Toc, Suncorp, Citi, Bankwest, and Bank of Queensland all varied their home loan interest rates in the past week, with some up and some down.

ANZ, NAB, and Westpac all increased fixed home loan rates in the past week, too.

This is the second time in three weeks Westpac increased rates - similar increases also applied to its subsidiaries St George, BankSA, and Bank of Melbourne.

A few variable loan rates from the majors were decreased, however, and this is also a growing theme among smaller lenders.

You'll also notice something a bit funny - usually comparison rates are higher than advertised rates, but many roll-over rates on fixed loans are now lower, which means comparison rates are pushed down too.

See Also: Is it too late to fix your home loan?

Tic:Toc

The online lender made a wide variety of changes to its fixed home loans for both owner occupiers and investors. Some highlights included:

  • Live-In Fixed P&I 3 Years: 20 basis point increase to 2.79% p.a. (2.12% p.a. comparison rate*)
  • Live-In Fixed P&I 5 Years: 25 basis point increase to 3.49% p.a. (2.52% p.a. comparison rate*)
  • Investor Fixed P&I 3 Years: 30 basis point increase to 2.90% p.a. (2.86% p.a. comparison rate*)
  • Investor Fixed P&I 5 Years: 30 basis point increase to 3.54% p.a. (3.13% p.a. comparison rate*)

The comparison rate is much lower than the advertised rate in large part because of the variable roll-over rates that apply when the fixed period ends.

At present for owner occupiers the roll-over rate is 1.89% p.a. while it's 2.84% p.a. for investors.

Suncorp

Suncorp made a wide variety of cuts to variable rates, while increasing fixed rates only modestly by between 5 and 13 basis points.

Some variable rate decreases included:

  • Back to Basics Better Together P&I 90%: 25 basis point cut to 2.29% p.a. (2.30% p.a. comparison rate*)
  • Home Package Plus First Home Buyer P&I 95%: 25 basis point cut to 2.44% p.a. (2.87% p.a. comparison rate*)
  • Investment Back to Basics P&I 70%: 10 basis point cut to 2.19% p.a. (2.20% p.a. comparison rate*)

Citi

Citi varied a few home loan rates - variable down, and fixed up.

  • Basic Variable P&I 80% 350k+: 10 basis point cut to 1.99% p.a. (2.04% p.a. comparison rate*)
  • Mortgage Plus Fixed 3 Years P&I 80%: 20 basis point increase to 3.19% p.a. (2.92% p.a. comparison rate*)
  • Inv Fixed 3 Years P&I 80%: 20 basis point increase to 3.49% p.a. (3.25% p.a. comparison rate*)

Bankwest

The CBA-owned Perth-based outfit increased rates on fixed home loans by between 10 and 55 basis points. Some highlights included:

  • Owner Occupied Complete P&I 3 Years 80%: 50 basis point increase to 3.59% p.a. (3.59% p.a. comparison rate*)
  • Owner Occupied Complete P&I 5 Years 80%: 50 basis point increase to 3.89% p.a. (3.80% p.a. comparison rate*)
  • Investment Complete P&I 3 Years: 50 basis point increase to 3.69% p.a. (4.29% p.a. comparison rate*)
  • Investment Complete P&I 5 Years: 50 basis point increase to 3.99% p.a. (4.37% p.a. comparison rate*)

Bank of Queensland

BoQ did what others didn't - it increased variable rates. 

The Economy Variable P&I home loan with 70% LVR was increased by 15 basis points to 2.13% p.a. (2.30% p.a. comparison rate*).

The same loan for 80% LVR was also increased by the same margin, now sitting at 2.18% p.a. (2.35% p.a. comparison rate*).

The usual fixed rate increases also applied, with some highlights including:

  • Residential Fixed 3 Years 90%: 25 basis point increase to 3.44% p.a. (3.32% p.a. comparison rate*)
  • Residential Fixed 5 Years 90%: 45 basis point increase to 3.94% p.a. (3.58% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years: 25 basis point increase to 4.29% p.a. (3.68% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years: 30 basis point increase to 4.39% p.a. (3.79% p.a. comparison rate*)

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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

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%
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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
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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
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 June 29, 2022. View disclaimer.


Photo by Mudassir Ali from Pexels

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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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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