Following hot on the tails of the big four, UBank, Bank of Queensland, and People's Choice Credit Union have increased fixed mortgage rates.
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.
Lender | |||||||||||||
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| Variable | More details | ||||||||||||
| FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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| Variable | More details | ||||||||||||
| FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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| Variable | More details | ||||||||||||
| QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS | Variable Home Loan (Principal and Interest)
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Variable Home Loan (Principal and Interest)
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| Variable | More details | ||||||||||||
| REFINANCE ONLY | Variable Rate Home Loan – Refinance Only
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Variable Rate Home Loan – Refinance Only
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| Variable | More details | ||||||||||||
| NO ONGOING FEESFREE REDRAW FACILITY | Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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- 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%
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 July 3, 2022. View disclaimer.
Photo by Eunice C on Unsplash
