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.
| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
