Home News BOQ, Suncorp, challenger banks increase home loan rates

BOQ, Suncorp, challenger banks increase home loan rates

With the RBA widely tipped to raise the cash rate in June, banks have moved ahead of the curve.

on 08 Apr 2022

BOQ, Suncorp, challenger banks increase home loan rates

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.

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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.

Loan amount

Compare

Lender	Advertised rate	Comparison rate*	Monthly repayment	Rate Type	Ongoing Fee	Upfront Fees	LVR	as ofNovember 29, 2023

	6.04^%_p.a.	6.06^%_p.a.	^$2,408	Variable	^$0	^$530	90^%	More details
FEATURED4.6 Star Customer RatingsIncludes Nov RBA Rate Increase	loans.com.au – Variable Home Loan (LVR < 90%) Low rates for purchase and refinancing Simple online application process No fees, unlimited redraws, 0.10% offset
FEATURED4.6 Star Customer RatingsIncludes Nov RBA Rate Increase loans.com.au – Variable Home Loan (LVR < 90%) Low rates for purchase and refinancing Simple online application process No fees, unlimited redraws, 0.10% offset More details
	5.74^%_p.a.	5.65^%_p.a.	^$2,332	Variable	^$0	^$0	80^%	More details
FEATUREDRefinance OnlyApply In Minutes	Unloan – Variable Rate Home Loan – Refinance Only 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.
FEATUREDRefinance OnlyApply In Minutes Unloan – Variable Rate Home Loan – Refinance Only 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. More details
	5.90^%_p.a.	5.90^%_p.a.	^$2,373	Variable	^$0	^$0	90^%	More details
FEATURED	Up – Up Home Variable (Principal & Interest) (LVR ≤ 90) Up is 100% owned by Bendigo Bank. Up to 50 offset accounts New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
FEATURED Up – Up Home Variable (Principal & Interest) (LVR ≤ 90) Up is 100% owned by Bendigo Bank. Up to 50 offset accounts New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply) More details

Variable Home Loan (LVR < 90%)

Product Features

Low rates for purchase and refinancing
Simple online application process
No fees, unlimited redraws, 0.10% offset

Monthly repayments:$2,408

6.04%Advertised Rate (p.a.)

6.06%Comparison Rate*

More details

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 November 29, 2023. View disclaimer.

Photo by Juan Montano on Unsplash

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Harrison Astbury

Harrison is Savings.com.au's Assistant Editor, and also Editor & Research Analyst of sister comparison site InfoChoice.com.au. Prior to joining Savings Media Group in January 2020, he worked for some of Australia's largest comparison sites and media organisations, and has key interests in housing policy, real estate, and niche topics such as the gold standard.

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BOQ, Suncorp, challenger banks increase home loan rates

Bank of Queensland

ING

Suncorp