Australian Unity was among the lenders lifting home loan interest rates this week amid continued speculation of an August cash rate hike.
The Reserve Bank of Australia (RBA) board will meet early next month to discuss the potential cash rate increase, which typically influences the interest rates lenders charge borrowers.
The board's ultimate goal is to mitigate inflation, which has proven stubborn lately despite the 13 rate hikes imposed on borrowers since mid-2022.
But homeowners don't need to worry just yet.
Most commentators, including those at the big four banks, still believe the cash rate has peaked.
Whether that remains the case is yet to be seen.
In the meantime, there's been plenty of home loan news to keep market watchers' attention. Here's what mortgage providers have been up to this week.
G&C Mutual bolsters rates offered to first-time buyers & refinancers
G&C Mutual increased the rates it has on the table for first home buyers and owner-occupied refinancers on Friday.
The customer-owned bank is promoting special offers for the two groups, and this week it lifted the advertised rates by up to nine basis points.
The change that could impact first home buyers is:
|
Product (special offer for FHB) |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
First Home Buyer |
≤95% |
+9bp |
5.99% |
6.02% |
This product is for those participating in the Home Guarantee Scheme.
Advertised special rates for home loan refinancers, meanwhile, saw these changes:
|
Product (special offer for refinancers) |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Momentum Home Loan |
≤60% |
+9bp |
5.99% |
6.02% |
|
Momentum Home Loan |
60-80% |
+9bp |
6.09% |
6.12% |
|
Momentum Home Loan |
80-95% |
+9bp |
6.19% |
6.22% |
Australian Unity hikes variable rates by up to 20 basis points
Mutual bank Australian Unity hiked rates on both its basic home loan options and its packaged products this week by as much as 20 basis points.
The discounted rates promised to new customers of its Kick Starter product were lifted by up to 5 basis points.
New customers to its owner-occupier Health Wealth Happiness product, which comes with an offset account, also face rates as much as 20 basis points higher.
And it wasn't just owner-occupier home loans being bolstered. The bank's investment offering, named Wealth Builder, also saw standard and discounted rates lifted 5 basis points.
Changes for owner-occupiers included:
|
Product (new borrowers, P&I repayments) |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Kick Starter Variable |
≤70% |
+5 bp |
6.18% |
6.18% |
|
Kick Starter Variable |
70-80% |
+5 bp |
6.23% |
6.23% |
|
Kick Starter Variable |
80-90% |
+5 bp |
6.49% |
6.49% |
|
Health Wealth Happiness Variable |
≤70% |
+20 bp |
6.33% |
6.33% |
|
Health Wealth Happiness Variable |
70-80% |
+20 bp |
6.39% |
6.39% |
|
Health Wealth Happiness Variable |
80-90% |
+20 bp |
6.59% |
6.59% |
Meanwhile, investors might be interested in these new rates:
|
Product (new borrowers, P&I repayments) |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Wealth Builder Investor Variable |
≤70% |
+5 bp |
6.54% |
6.58% |
|
Wealth Builder Investor Variable |
70-80% |
+5 bp |
6.59% |
6.63% |
|
Wealth Builder Investor Variable P&I |
80-90% |
+5 bp |
6.84% |
6.88% |
loans.com.au launches bridging loans, cuts cashback deal
Beyond interest rates, there were some notable changes over at loans.com.au this week, with the non-bank lender introducing bridging loans.
The products are designed as a temporary form of finance for those buying one property while they await the sale of another.
loans.com.au's bridging loan only allows for interest only repayments, currently advertises an interest rate of 7.75% p.a. (comparison rate* 6.31% p.a.), and is available to those with an LVR of 80% or less.
At the same time, the lender dropped its cashback offer for home loan refinancers. Previously, those switching to the lender could secure as much as $4,000 cashback for doing so.
In the interests of full disclosure, both Savings.com.au and loans.com.au are associates of the Firstmac Group.
Police Credit Union hikes fixed interest rates
Finally, Police Credit Union lifted its fixed home loan interest rates by as much as 30 basis points.
While the name might suggest otherwise, the mutual bank provides finance products to everyone, not just members of police forces.
For borrowers with LVRs of 80% or less, changes included:
Changes for owner-occupiers
The bank now offers rates of 6.09% p.a. for owner-occupiers signing onto fixed periods of one, two, or three years (respective comparison rates* of 7.40% p.a., 7.26% p.a., and 7.14% p.a).
Meanwhile, an owner-occupier looking for a four or five year fixed home loan rate might be able to secure a rate of 6.19% p.a. (respective comparison rates* of 7.06% p.a. and 6.97% p.a.).
Changes for investors
Property investors, on the other hand, could secure a 6.19% p.a. fixed rate for one, two, or three years (respective comparison rates* of 7.41% p.a., 7.28% p.a., and 7.17% p.a).
For longer fixed periods of four or five years, the rate has been boosted to 6.29% p.a. (respective comparison rates* of 7.10% p.a. and 7.01% p.a.).
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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 Joel & Jasmin Førestbird on Unsplash
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