Home News BOQ, Suncorp, challenger banks increase home loan rates

BOQ, Suncorp, challenger banks increase home loan rates

With the RBA widely tipped to raise the cash rate in June, banks have moved ahead of the curve.

First published on 08 Apr 2022

BOQ, Suncorp, challenger banks increase home loan rates

In the past week, banks such as Bank of Queensland, ING, and Suncorp increased home loan rates after the RBA's cash rate hold on Tuesday caused a flurry of further speculation.

Westpac is the latest major bank to increase rates, while customer-owned institutions to increase rates in the past week include People's Choice and Newcastle Permanent.

Bank of Queensland

BOQ increased a wide range of fixed home loan rates, with some key increases including:

Residential Fixed 1 Year Discount 80%: 75 basis point increase to 3.89% p.a. (3.31% p.a. comparison rate*)
Residential Fixed 5 Years Discount 80%: 70 basis point increase to 4.79% p.a. (3.92% p.a. comparison rate*)

Notably, the bank's non-discounted advertised rates for residential one and five-year fixed products are now the same, and the one year fixed interest-only rate is lower than the P&I rate.

Key increases for investors included:

Investment Fixed 1 Year Discount 80%: 75 basis point increase to 4.04% p.a. (3.48% p.a. comparison rate*)
Investment Fixed 5 Years Discount 80%: 70 basis point increase to 4.94% p.a. (4.09% p.a. comparison rate*)

ING

The spread between one and five year fixed rates appears to be widening, with ING increasing rates by up to 75 basis points:

Residential Fixed 1 Year 80%: 45 basis point increase to 3.29% p.a. (2.22% p.a. comparison rate*)
Residential Fixed 5 Years 80%: 75 basis point increase to 5.09% p.a. (3.32% p.a. comparison rate*)
Investment Fixed 1 Year: 45 basis point increase to 3.49% p.a. (2.75% p.a. comparison rate*)
Investment Fixed 5 Years: 75 basis point increase to 5.19% p.a. (3.81% p.a. comparison rate*)

Suncorp

Suncorp increased home loan rates in much the same fashion, with a few key changes including:

Residential Fixed 1 Year: 40 basis point increase to 3.59% p.a. (5.03% p.a. comparison rate*)
Residential Fixed 5 Years: 45 basis point increase to 4.99% p.a. (5.17% p.a. comparison rate*)
Investment Fixed 1 Year: 47 basis point increase to 3.81% p.a. (5.45% p.a. comparison rate*)
Investment Fixed 5 Years: 49 basis point increase to 5.13% p.a. (5.47% p.a. comparison rate*)

Suncorp also has interest rate discounts on its packaged products as a special offer.

Customer-owned bank movements

It was much the same story in the customer-owned banking space, with two of the largest - People's Choice and Newcastle Permanent - increasing fixed home loan rates.

People's Choice

Residential Fixed 1 Year: 25 basis point increase to 3.19% p.a. (4.54% p.a. comparison rate*)
Residential Fixed 5 Years: 30 basis point increase to 4.69% p.a. (4.74% p.a. comparison rate*)
Investment Fixed 1 Year: 25 basis point increase to 3.49% p.a. (5.15% p.a. comparison rate*)
Investment Fixed 5 Years: 30 basis point increase to 4.99% p.a. (5.24% p.a. comparison rate*)

Newcastle Permanent

Residential Fixed 1 Year: 20 basis point increase to 2.99% p.a. (4.17% p.a. comparison rate*)
Residential Fixed 5 Years: 30 basis point increase to 4.49% p.a. (4.39% p.a. comparison rate*)
Investment Fixed 1 Year: 10 basis point increase to 3.09% p.a. (4.49% p.a. comparison rate*)
Investment Fixed 5 Years: 20 basis point increase to 4.59% p.a. (4.63% p.a. comparison rate*)

Newcastle Permanent is also distinct in the market in that it's one of the very few to offer seven and 10-year-fixed home loans, which it also increased by 30 basis points in the past week.

That said, the lender decreased its variable 'Real Deal' 80% LVR home loan by 10 basis points as a special offer.

Other customer-owned banks to increase rates this week include Gateway Bank and Auswide Bank.

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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.

Loan purpose

Loan amount

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan (LVR < 90%)	6.04% p.a.	6.08% p.a.	$3,011	Principal & Interest	Variable	$0	$530	90%	4.6 Star Customer Ratings	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.99% p.a.	5.90% p.a.	$2,995	Principal & Interest	Variable	$0	$0	80%	Apply in minutes	No application or ongoing fees. Annual rate discount Unlimited redraws & additional repayments. LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	More details	Compare	Promoted	Disclosure
ubank, part of NAB	ubank, part of NAB Neat home loan - max. 60% LVR (Owner occupied, Principal and interest)	6.09% p.a.	6.11% p.a.	$3,027	Principal & Interest	Variable	$0	$250	60%		No annual fees – None! Get fast pre-approval Unlimited additional repayments free of charge	More details	Compare	Promoted	Disclosure

Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

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Harrison Astbury

Harrison is Savings.com.au's Assistant Editor, and also Editor & Research Analyst of sister comparison site InfoChoice.com.au. Prior to joining Savings Media Group in January 2020, he worked for some of Australia's largest comparison sites and media organisations, and has key interests in housing policy, real estate, and niche topics such as the gold standard.

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For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

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BOQ, Suncorp, challenger banks increase home loan rates

Bank of Queensland

ING

Suncorp