The week just been was a spooky one for both everyday punters (happy Halloween!) and would-be home loan borrowers.
Many banks and lenders upped their offered interest rates this week ahead of what’s widely expected to be a cash rate hike.
The Reserve Bank of Australia (RBA) board will come together for its November meeting on Tuesday.
Many economists are predicting the board will bolster the cash rate by another 25 basis points, bringing it to 4.35%, on the back of recent data on inflation, retail trade, and unemployment.
Among the home loan moves and shakers this week was big four bank ANZ and banking giants ING and Macquarie, with each of the trio hiking rates on offer to new borrowers.
There were some notable exceptions, however, as a handful of smaller banks lowered rates on certain mortgage products.
ANZ bolstered fixed home loan rates by up to 0.35%
Taking the top spot in this week’s home loan rate wrap is the smallest of the big four banks, ANZ.
It upped the fixed interest rates on offer to both owner occupiers and investors this week by as much as 35 basis points.
It’s a step backwards for the banking major, which slashed fixed interest rates on many home loan products by as much as 30 basis points in September.
The latest changes implemented by ANZ include:
- Residential, fixed for 1 year, with loan-to-value ratio (LVR) of ≤80%: 35 basis point increase to 6.69% p.a. (6.96% p.a. comparison rate*)
- Residential, fixed for 3 years, with LVR of 80% to 90%: 30 basis point increase to 6.64% p.a. (7.03% p.a. comparison rate*)
- Investment, fixed for 2 years, with LVR of ≤80%: 30 basis point increase to 6.69% p.a. (7.41% p.a. comparison rate*)
ING increases home loan rates by up to 0.4%
Iconically orange Dutch banking giant ING upped many of its home loan rates this week by as much as 40 basis points.
It comes after the bank dropped the rates offered on some of its home loans by 30 basis points back in August.
Owner occupiers considering signing up for a home loan with ING, borrowing upwards of $150,000 with an LVR of 80% or under, will want to know about these changes:
- Variable rate Mortgage Simplifier, principle and interest (P&I) repayments: 5 basis point increase to 5.89% p.a. (5.91% p.a. comparison rate*)
- Orange Advantage Residential, 2 year fixed with P&I repayments: 20 basis point increase to 6.29% p.a. (5.99% p.a. comparison rate*)
- Orange Advantage Residential, 4 year fixed rate with P&I repayments: 40 basis point increase to 6.39% p.a. (6.10% p.a. comparison rate*)
Macquarie Bank hikes fixed rates by as much as 0.36%
Macquarie Bank also hiked its fixed rate offerings this week, just days before it apparently disappointed investors.
The investment banking giant, which also operates a popular retail banking brand, upped many of its fixed rate home loan products available to both owner occupiers and investors, with highlights including:
- Basic Owner Occupied, 2 year fixed, P&I repayments and LVR ≤80%: 20 basis point increase to 6.65% p.a. (6.11% p.a. comparison rate*)
- Basic Owner Occupied, 5 year fixed, P&I repayments and LVR ≤80%: 36 basis point increase to 6.75% p.a. (6.32% p.a. comparison rate*)
- Basic Investment, 1 year fixed, P&I repayments and LVR ≤70%: 20 basis point increase to 6.69% p.a. (6.18% p.a. comparison rate*)
- Basic Investment, 4 year fixed, P&I repayments and LVR ≤70%: 30 basis point increase to 6.75% p.a. (6.35% p.a. comparison rate*)
Macquarie Group – the company behind the bank – is listed on the ASX, meaning the market gets a front row seat to its performance as a business.
This morning, it revealed a $1.4 billion profit for the six months ended 31 September – a 51% drop on that of the prior six-month period. Though, its banking business did well, posting a 10% year-on-year increase in profits.
The Macquarie Group share price is down 0.74% at the time of writing.
Other lenders making home loan rate changes
ANZ, ING, and Macquarie were far from alone in making home loan interest rate changes this week. Other notable changes included:
Bendigo Bank dropped the interest rate offered on its variable Complete Home Loan product by 10 basis points for borrowers with an LVR of between 60% and 80% – it now offers a 5.99% p.a. interest rate (6.21% p.a. comparison rate*).
AMP Bank also joined in on the action, shaking up its variable home loan offerings by as much as 30 basis points. Changes include:
- Professional Package, owner occupied, P&I repayments, ≤60% LVR, borrowing between $100,000 and $499,000: 20 basis point increase to 6.69% p.a. (7.03% p.a. comparison rate*)
- Professional Package, investment, P&I repayments, 80% to 90% LVR, borrowing between $500,000 and $1 million: 25 basis point decrease to 6.41% p.a. (6.76% p.a. comparison rate*)
RACQ Bank increased many of its variable Fair Dinkum Home Loan rates by 10 basis points and upped most of its fixed rate offerings by up to 25 basis points.
And finally, ME Bank lowered the interest rates on some of its Member Package Flexible Home Loans by 14 basis points.
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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 | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.69% p.a. | 6.16% p.a. | $2,899 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Jonny Caspari on Unsplash.
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