Variable rates on the rise

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It finally happened. The Reserve Bank of Australia (RBA) raised the cash rate from 0.10% to 0.35% last month, and the majority of banks have spent the weeks since scrambling to revise their variable rates.

Of the 94 lenders we track, 74 have passed the entire 0.25% rate hike on to their clients, 10 lenders have only partially raised rates, and the remaining 10 have not yet made their plans public. planes.

On the fixed rate front, we continue to see lenders revising their rates upwards. There are no more loans in our database with rates lower than 2% per annum after the latest denial – Unity Bank – increased its 1-year fixed rate offer to 2.49% per annum (rate comparison rate of 4.33% per year*).

So who else raised the rates? What are the lowest and average mortgage rates in our database? What do variable rates look like after the RBA hike? Find out below.

Recent evolution of fixed and variable rates

Since the RBA raised the cash rate on May 3, 74 of 94 lenders in Mozo’s database have raised their floating rates in line with the RBA. Some other notable changes from last month include.

  • Commbank has launched a new digital loan called unloan for borrowers looking to refinance.
  • NAB’s subsidiary, ubank, has undergone a major name change following the absorption of neobank 86,400. The merger will see ubank take over the product range of 86,400, including bank accounts, savings accounts and real estate loans.
  • Tic:Toc raised its variable rates by 20 basis points, from 2.09% pa (2.10% pa comparison rate*).

When it comes to fixed rates, some notable changes include:

  • NAB has increased all of its fixed rate options. 1-year maturities are up 60 bp at 3.59% pa (comparative rate 4.51% pa*).
  • Bankwest fixed rates jumped sharply, with 1-year rates up 120 bps, 2-year rates up 150 bps, 3-year rates up 80 bps and 4- and 5-year rates up 70 bps.
  • Westpac 1-year rates rose 80 bps to 3.59% pa (3.87% pa comparison rate*).

The lowest mortgage rates

Rates could rise across the board, but there are still lenders offering home loan rates below the 3% per annum mark. Here’s a look at the lowest variable and fixed mortgage rates (P&I, LVR

Lowest Variable Rates — Mozo Database (June 1, 2022)^^

Lowest and Average Fixed Rates — Mozo Database (June 1, 2022)^^

Term Leader Fixed rate
1 year Unit Bank 2.49% per year (comparative rate of 4.33% per year*)
2 years Caisse Populaire d’Orange 3.19% per year (comparative rate of 3.21% per year*)
3 years BankWAW 3.55% per year (comparative rate of 4.18% per year*)
4 years BCUs 4.19% per year (comparative rate of 4.10% per year*)
5 years Australian Military Bank 4.34% per year (comparative rate of 3.80% per year*)

Remember, these are the lowest rates available in our database for borrowers with an LVR

Thinking of buying a property or looking to refinance your existing mortgage? Use Mozo’s handy home loan comparison chart to look at lenders side-by-side.

^^Interest rates are based on a homeowner making principal and interest payments on a $400,000 loan with an LVR of 80%. Discover our dedicated Australian home loan statistics page for more information on average mortgage rates.

*
ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate shown is for a secured loan with monthly principal and interest repayments of $150,000 over 25 years.

**
Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on your loan amount, loan term and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.

^ See Mozo Experts Choice Home Loan Awards information

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