In the final week before Christmas there was movement both up and down from several Australian lenders.
The biggest bank to alter rates was Bendigo Bank, which hiked variable rates for investors and fixed rates for owner occupiers, while some investment fixed rates were cut.
Mortgage rates are still rising despite expectations of a February cash rate cut seemingly gathering momentum – as of 18 December, the market was pricing a 73% chance the RBA will cut rates to 4.10% when it next reconvenes.
Economists from NAB, Westpac, and ANZ are still forecasting no rate cuts until May, although those at CommBank have maintained February is the likeliest start date.
It might be surprising to see so many lenders hiking fixed rates in this environment but it's worth remembering there was a flurry of cuts earlier in the year, particularly to shorter fixed terms.
In August, the average rate on new loans fixed for three years or less was 6.10% p.a., but by October this had dropped to 5.70% p.a., according to RBA figures.
The average new variable rate has remained around 6.30% p.a. since January.
Bendigo Bank hikes variable rates for investors
| Product | Interest rate change |
|---|---|
| Investment Complete Home Loan Variable P&I <80% (80%) | Up 15 bps to 6.49% p.a (6.71% p.a comparison rate*) |
| Investment Complete Home Loan Variable P&I <90% (90%) | Up 10 bps to 6.64% p.a (6.86% p.a comparison rate*) |
Bendigo hike fixed rates for owner occupiers...
| Product | Interest rate change |
|---|---|
| Express Fixed P&I 1 yr (90% LVR) | Up 20 bps to 6.04% p.a (6.21% p.a comparison rate*) |
| Express Fixed P&I 2 yrs (90% LVR) | Up 20 bps to 5.74% p.a (6.15% p.a comparison rate*) |
| Complete Home Loan Fixed P&I 1 yr (95% LVR) | Up 20 bps to 6.04% p.a (6.44% p.a comparison rate*) |
| Complete Home Loan Fixed P&I 2 yrs (95% LVR) | Up 20 bps to 5.74% p.a (6.36% p.a comparison rate*) |
...and cuts fixed rates for investors
| Product | Interest rate change |
|---|---|
| Investment Express Fixed P&I 1 yr (90% LVR) | Down 25 bps to 6.39% p.a (6.43% p.a comparison rate*) |
| Investment Express Fixed P&I 2 yrs (90% LVR) | Down 25 bps to 6.09% p.a (6.38% p.a comparison rate*) |
| Investment Complete Home Loan Fixed P&I 1 yr (90% LVR) | Down 25 bps to 6.39% p.a (6.70% p.a comparison rate*) |
| Investment Complete Home Loan Fixed P&I 2 yrs (90% LVR) | Down 25 bps to 6.09% p.a (6.63% p.a comparison rate*) |
Tiimely Home varies rates by up to 20 bps
| Product | Rate Change |
|---|---|
| One year fixed (LVR 0.01-90%) | Up 15 bps to 5.99% p.a (6.00% p.a comparison rate*) |
| Two year fixed (LVR 0.01-90%) | Up 20 bps to 5.74% p.a (5.99% p.a comparison rate*) |
| Investor one year fixed (LVR 0.01-90%) | Down 5 bps to 6.19% p.a (6.28% p.a comparison rate*) |
| Investor two year fixed (LVR 0.01-90%) | Down 20 bps to 5.94% p.a (6.23% p.a comparison rate*) |
| Investor three year fixed (LVR 0.01-90%) | Up 10 bps to 6.24% p.a (6.28% p.a comparison rate*) |
| Investor four year fixed (LVR 0.01-90%) | Down 10 bps to 6.24% p.a (6.28% p.a comparison rate*) |
| Investor five year fixed (LVR 0.01-90%) | Down 10 bps to 6.24% p.a (6.27% p.a comparison rate*) |
Other movers
- Auswide Bank hiked special offer fixed rates 20 bps to 5.74% p.a. for loan-to-value ratios (LVRs) up to 80%
- Adelaide Bank varied rates up to 45 bps
- The Mutual Bank hiked by up to 20 bps
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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.
Picture from Maximilian Conacher on Unsplash
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