Wednesday's increases apply to both owner occupier and investment home loans fixed between one and five years.
Some of the key loans affected include:
- Fixed Options P&I 2 Years 95%: 15 basis point increase to 3.19% p.a. (4.47% p.a. comparison rate*)
- Fixed Options P&I 4 Years 95%: 15 basis point increase to 3.99% p.a. (4.52% p.a. comparison rate*)
- Investment Fixed P&I 2 Years 80%: 20 basis point increase to 3.34% p.a. (4.94% p.a. comparison rate*)
- Investment Fixed P&I 4 Years 80%: 15 basis point increase to 4.19% p.a. (4.94% p.a. comparison rate*)
This marks the third time this year the major lender has increased fixed home loan rates after hikes in February and January.
Similar rate increases also applied to Westpac subsidiaries Bank of Melbourne, St George, and BankSA.
The four-year owner occupier loan is 180 basis points (1.80%) higher than it was a year ago.
On Tuesday the ABS reported the average home loan size for owner occupiers was $619,000.
Using this loan amount over a 30-year term, 180 basis points' difference would add $605 per month in interest to the home loan.
RBA data indicates fixed rates on the whole are moving sharply upwards, as seen in the graph below, prompting many to wonder if it's too late to fix their home loan.
The RBA has not changed the cash rate since November 2020, and while economists forecast it will as early as June, the war unfolding in Ukraine is providing a lot of economic uncertainty.
Photo by Mudassir Ali from Pexels
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Denise Raward
Harrison Astbury
Harry O'Sullivan
