The rate rise has been foreshadowed by Bendigo Bank CEO Richard Fennell and will be part of a wider strategic shift for the Bendigo group.

Mr Fennell told the Australian Financial Review that Up would raise rates for borrowers from 1 December, saying the bank was “testing price elasticity”.

Mr Fennell took the reins from former-CEO Marnie Baker, who’d steered the banking group since 2018, on 31 August.

At last week’s annual general meeting, Mr Fennell told shareholders one of its key investment focuses for 2025 was capturing a larger market share of young people with its Up mortgage and savings products.

Up Bank celebrates one million milestone

Bendigo Bank announced Up Bank had reached a milestone one million customers this week, just six years after its launch.

But Mr Fennell told the Financial Review the bank didn’t “want to use price as a lever for growth”.

He also told shareholders Bendigo was looking to extend Up’s digital capabilities across the whole of Bendigo’s operations where appropriate.

Up’s variable home loan rate is currently one of the lowest variable rates on the market at 5.95% p.a. (5.95% p.a. comparison rate*) with no bank fees, including discharge fees.

The bank also covers the first $400 in property valuation costs incurred by a borrower.

The variable rate applies to borrowers with deposits of 10% or more, with the product also offering free offset and redraw facilities.

Up’s fixed home loan rates are also all under 6.00% p.a., including comparison rates, for one- to five-year terms.

Up Bank's 'skyrocket' growth

Up has seen a 29% year-on-year increase in customers and a 37% year-on-year growth in savings deposits.

It currently has 2,000 settled home loans on its books and more than $2 billion in deposits.

Up’s app includes its Savers features that allow customers to lock and hide nominated accounts to reduce temptation to spend as well as ‘round ups’ that see any cents left over from rounded-up transactions deposited into their savings accounts.

Tough market for smaller banks

Regional and smaller banks are coming under increasing pressure in a competitive mortgage market and from rising technology costs.

Bendigo Bank reported a cash profit of $562 million over the last financial year to 30 June – 2.6% lower than the previous year.

However, shareholder interest in the banking sector generally has seen its share price grow by almost 38% over the past 12 months.

As well as implementing some of Up’s digital capabilities through the wider operation, Mr Fennell also told shareholders Bendigo Bank will also focus on investing in its Business and Agri division, perhaps signalling a return to its regional roots.

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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.

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Filters
LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% 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.
Disclosure
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.
 Disclosure
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
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 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

Image by Donald Giannatti via Unplash



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