In the past week, banks such as Bank of Queensland, ING, and Suncorp increased home loan rates after the RBA's cash rate hold on Tuesday caused a flurry of further speculation.

Westpac is the latest major bank to increase rates, while customer-owned institutions to increase rates in the past week include People's Choice and Newcastle Permanent.

Bank of Queensland

BOQ increased a wide range of fixed home loan rates, with some key increases including:

  • Residential Fixed 1 Year Discount 80%: 75 basis point increase to 3.89% p.a. (3.31% p.a. comparison rate*)
  • Residential Fixed 5 Years Discount 80%: 70 basis point increase to 4.79% p.a. (3.92% p.a. comparison rate*)

Notably, the bank's non-discounted advertised rates for residential one and five-year fixed products are now the same, and the one year fixed interest-only rate is lower than the P&I rate.

Key increases for investors included:

  • Investment Fixed 1 Year Discount 80%: 75 basis point increase to 4.04% p.a. (3.48% p.a. comparison rate*)
  • Investment Fixed 5 Years Discount 80%: 70 basis point increase to 4.94% p.a. (4.09% p.a. comparison rate*)

ING

The spread between one and five year fixed rates appears to be widening, with ING increasing rates by up to 75 basis points:

  • Residential Fixed 1 Year 80%: 45 basis point increase to 3.29% p.a. (2.22% p.a. comparison rate*)
  • Residential Fixed 5 Years 80%: 75 basis point increase to 5.09% p.a. (3.32% p.a. comparison rate*)
  • Investment Fixed 1 Year: 45 basis point increase to 3.49% p.a. (2.75% p.a. comparison rate*)
  • Investment Fixed 5 Years: 75 basis point increase to 5.19% p.a. (3.81% p.a. comparison rate*)

Suncorp

Suncorp increased home loan rates in much the same fashion, with a few key changes including:

  • Residential Fixed 1 Year: 40 basis point increase to 3.59% p.a. (5.03% p.a. comparison rate*)
  • Residential Fixed 5 Years: 45 basis point increase to 4.99% p.a. (5.17% p.a. comparison rate*)
  • Investment Fixed 1 Year: 47 basis point increase to 3.81% p.a. (5.45% p.a. comparison rate*)
  • Investment Fixed 5 Years: 49 basis point increase to 5.13% p.a. (5.47% p.a. comparison rate*)

Suncorp also has interest rate discounts on its packaged products as a special offer.

Customer-owned bank movements

It was much the same story in the customer-owned banking space, with two of the largest - People's Choice and Newcastle Permanent - increasing fixed home loan rates.

People's Choice

  • Residential Fixed 1 Year: 25 basis point increase to 3.19% p.a. (4.54% p.a. comparison rate*)
  • Residential Fixed 5 Years: 30 basis point increase to 4.69% p.a. (4.74% p.a. comparison rate*)
  • Investment Fixed 1 Year: 25 basis point increase to 3.49% p.a. (5.15% p.a. comparison rate*)
  • Investment Fixed 5 Years: 30 basis point increase to 4.99% p.a. (5.24% p.a. comparison rate*)

Newcastle Permanent

  • Residential Fixed 1 Year: 20 basis point increase to 2.99% p.a. (4.17% p.a. comparison rate*)
  • Residential Fixed 5 Years: 30 basis point increase to 4.49% p.a. (4.39% p.a. comparison rate*) 
  • Investment Fixed 1 Year: 10 basis point increase to 3.09% p.a. (4.49% p.a. comparison rate*)
  • Investment Fixed 5 Years: 20 basis point increase to 4.59% p.a. (4.63% p.a. comparison rate*)

Newcastle Permanent is also distinct in the market in that it's one of the very few to offer seven and 10-year-fixed home loans, which it also increased by 30 basis points in the past week.

That said, the lender decreased its variable 'Real Deal' 80% LVR home loan by 10 basis points as a special offer.

Other customer-owned banks to increase rates this week include Gateway Bank and Auswide Bank.

Advertisement

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
 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
Compare More Home Loans

Photo by Juan Montano on Unsplash

Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy