CommBank, Westpac, NAB and ANZ have all increased fixed mortgage rates, largely consistent with each other, while cutting variable rates.

This is ahead of the RBA's Melbourne Cup cash rate decision on Tuesday, and new APRA serviceability rules coming Monday.

While the RBA is widely expected to hold, major banks have adjusted their forecasts as to when the first cash rate hike will happen - CBA had the earliest tip of November 2022, followed by Westpac at February 2023, and ANZ at the second half of 2023.

This is despite the Reserve Bank board maintaining it does not forecast a rate hike until 2024, even as inflation hits the 3% barrier for two consecutive quarters.

A number of other lenders increased home loan rates on Thursday, namely UBank, Bank of Queensland, and People's Choice Credit Union.

UBank

UBank increased three and five-year fixed home loan rates. Some changes include:

  • Owner Occupier Fixed P&I 3 Years 80%: 24 basis point increase to 2.09% p.a. (2.19% p.a. comparison rate*)
  • Owner Occupier Fixed P&I 5 Years 80%: 10 basis point increase to 2.59% p.a. (2.37% p.a. comparison rate*)
  • Investor Fixed 3 Years P&I 3 Years: 15 basis point increase to 2.24% p.a. (2.34% p.a. comparison rate*)
  • Investor Fixed 5 Years P&I 5 Years: 10 basis point increase to 2.64% p.a. (2.48% p.a. comparison rate*)

Investment home loans have a maximum LVR of 80%.

UBank also increased interest rates on owner occupier home loans for those with 15% deposits (85%) LVR, which waive lenders mortgage insurance.

Bank of Queensland

BoQ also increased owner occupier fixed mortgage rates by 10 basis points, spanning between one and five years. Some changes include: 

  • Fixed 1 Year 80%: Now 2.39% p.a. (3.19% p.a. comparison rate*)
  • Fixed 2 Years 80%: Now 2.09% p.a. (3.08% p.a. comparison rate*)
  • Fixed 3 Years 80%: Now 2.29% p.a. (3.05% p.a. comparison rate*)

Fixed-rate home loans for borrowers with up to 90% LVR were also increased by 10 basis point.

People's Choice

The Adelaide-based credit union did much the same, increasing interest rates on fixed mortgages. Some changes included:

  • Residential Fixed 4 Years P&I: 25 basis point increase to 2.79% p.a. (4.08% p.a. comparison rate*)
  • Investment Fixed 4 Years P&I: 25 basis point increase to 2.99% p.a. (4.57% p.a. comparison rate*)

A number of other investor and owner occupier loans fixed for between four and five years were also increased by five and 25 basis points.

People's Choice also decreased its standard variable rates for both owner occupiers and investors by 35 basis points. 

Australian Military Bank - a bank only for Defence Force members and family - also slashed its standard variable rate by 159 basis points.

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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 Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
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.
Disclosure
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.
 Disclosure
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.
 Disclosure
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
  • Apply online in as little as 15 minutes
  • Dedicated home loan experts are available to help
Disclosure
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.

Important Information and Comparison Rate Warning

Photo by Eunice C on Unsplash



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