Mortgage movement sees lenders continue to raise fixed rates and reduce variable rates

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Over the past week, fixed interest rates have increased by up to 57 basis points on some home loans while variable rates have been reduced by up to 26 basis points.

A continuing trend has emerged as many lenders continue to increase fixed interest rates while reducing variable interest rates on mortgages.

For example, the Great Southern Bank increased its fixed rates by up to 57 basis points while simultaneously reducing its variable rates by up to 20 basis points.

To give you a clear picture of the movement of fixed and variable interest rates over the past week, these have been separated.

Fixed interest rate movement

The Great Southern Bank has increased a number of its fixed interest rates for homeowners and investors up to 57 basis points:

  • P&I fixed 2 years: Increase of 40 basis points to 2.34% per annum (benchmark rate of 3.55%)
  • P&I fixed 3 years: Increase of 57 basis points to 2.59% pa (comparison rate of 3.51%)
  • Fixed interest investment only (IO) 2 years: 50 basis point increase to 2.79% pa (3.98% comparison rate)
  • 3-year Fixed IO investment: Increase of 54 basis points to 2.99% pa (comparison rate of 3.92%)

86,400 also raised its fixed interest rates up to 55 basis points, including:

  • 5-year Fixed IO Own Housing Loan: 55 basis points increase to 3.59% pa (3.03% comparison rate)
  • Own real estate loan P&I fixed 3 years 80-85%: 50 basis point increase to 2.99% pa (3.08% comparison rate)
  • Own real estate loan P&I fixed 5 years 80-85%: Increase of 50 basis points to 3.49% per annum (comparison rate of 3.32%)

UBank has increased fixed interest rates by 40 basis points on a number of its mortgages:

  • UHomeLoan IO fixed 5 years: Increase of 40 basis points to 3.14% per annum (comparison rate of 2.58%)
  • UHomeLoan Fixed IO 5 years 80-85%: 40 basis points increase to 3.34% per year (comparison rate of 2.76%)
  • UHomeLoan P&I fixed 5 years: 40 basis point increase to 2.99% pa (2.53% comparison rate)

Change in interest rates

The Great Southern Bank has lowered its variable interest rates by up to 20 basis points:

  • Basic variable P&I ≤80%: 20 basis points down to 2.19% pa (2.24% comparison rate)
  • P&I shift variable ≤80%: Decrease of 15 basis points to 2.39% pa (comparison rate of 2.44%)

IMB also lowered its variable rates by up to 26 basis points:

  • Home Loan P&I Essentials ≤70%: Decrease of 26 basis points to 2.43% pa ​​(comparison rate of 2.57%)
  • Investment Essentials P&I mortgage ≤80%: Decrease by 20 basis points to 2.78% per annum (comparison rate of 2.97%)

Other notable mortgage activity

A number of lenders have also increased their fixed interest rates on home loans, including Westpac and its subsidiaries BankSA, Bank of Melbourne and St George, all of which have increased by up to 40 basis points.

Auswide also increased some mortgage rates by 20 basis points.

While most lenders have increased their fixed rates, a few select lenders have actually lowered their fixed interest rates this week.

For example, Summerland Credit Union reduced its fixed interest rates by up to 20 basis points.

In addition, Gateway Bank has raised and lowered its fixed interest rates by up to 34 basis points and 20 basis points respectively.


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Buying a home or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.

Lender

Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details
LIMITED TIME OFFER

Smart Booster real estate loan at variable discount rate – 2 years (LVR
  • Fast turnaround times, can meet a 30 day settlement
  • For purchase and refinancing, minimum deposit of 20%
  • No ongoing or monthly fees, add compensation for 0.10%

Variable More details
100% FULL ACCOUNTNO APPLICATION FEES OR CURRENT FEES

Low rate home loan – Premium (principal and interest) (owner occupied) (LVR
  • No upfront or ongoing fees
  • 100% clearing account
  • Additional refunds + reprint services

Variable More details
REFINANCING IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Busy, Principal and Interest (Refinancing Only)

  • Refinancing only. Fast online application
  • No Nano fees. 100% free sub-account clearing
  • Mobile app, Visa debit card and instant payments
Variable More details
NO INITIAL OR ONGOING FEES

Owner Occupant Accelerate – Celebrate (LVR
  • We reduce your rate based on the amount you have repaid on your loan
  • Automatic rate matching
  • No upfront or ongoing fees


Image by Joan Oger on Unsplash

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Client-Owned Institutions, and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be considered, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as raffle fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.


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