Following Westpac’s decision to raise rates, CommBank and Macquarie followed suit by raising fixed mortgage rates by 30 basis points.
Westpac’s hike in fixed mortgage rates by 30 basis points on Thursday was largely replicated by Australia’s largest bank on Friday.
CommBank has expanded a range of loans in its “Residential Fixed”, “Investment Fixed” and “Wealth Package” portfolio for homeowners and investors.
CommBank previously raised fixed mortgage rates twice last month, making the increase the third of the year.
All fixed rate increases apply to both principal and interest (P&I) and interest only (IO) loans with a maximum loan to value ratio (LVR) of 95%.
Highlights of fixed rate increases in CommBank’s home loan portfolio included:
- P&I Fixed Residential 4 Years: Increase of 30 basis points to 4.14% per year (comparative rate of 4.56% per year*)
- Fixed residential IO 4 years: Increase of 30 basis points to 4.64% per year (comparative rate of 4.72% per year*)
- 4-year fixed P&I investment: Increase of 30 basis points to 4.34% per annum (comparative rate of 5.00% per annum*)
- Fixed Investment IO 4 Years: Increase of 30 basis points to 4.64% per year (comparative rate of 5.10% per year*)
- Fixed residential Wealth P&I package 4 years 150k+: Increase of 30 basis points to 3.99% per year (comparative rate of 4.32% per year*)
- Fixed P&I investment package 4 years 150k+: Increase of 30 basis points to 4.19% per year (comparative rate of 4.76% per year*)
Similarly to Westpac, CommBank also took the scissors to variable rates, cutting its “Extra” home loan offerings by 10 basis points.
These changes included:
- Additional P&I Decrease of 10 basis points to 2.19% per year (comparative rate of 2.20% per year*)
- Additional P&I 70-80%: Decrease of 10 basis points to 2.29% per year (comparative rate of 2.30% per year*)
- Additional I/O Decrease of 10 basis points to 2.75% per year (comparative rate of 2.41% per year*)
- Additional I/O 70-80%: Decrease of 10 basis points to 2.85% per year (comparative rate of 2.51% per year*)
Read more: Should you lock in your mortgage rate?
Macquarie Bank
Macquarie Bank has raised a series of fixed-rate home loans for homeowners and investors by up to 115 basis points.
Recently, Macquarie Bank claimed that the Big Four would become the “Big Five”, reaching a market capitalization of $164 billion surpassing the likes of NAB, Westpac and ANZ.
Major increases in Macquarie Bank’s home loan portfolio include:
- Basic fixed P&I owner-occupied 70% 2 years: Increase of 105 basis points to 3.79% per year (comparative rate of 2.46% per year*)
- Basic fixed P&I owner-occupied 95% 4 years: Increase of 85 basis points to 5.19% pa (comparative rate of 3.73% pa*)
- Basic fixed owner occupied IO 70% 2 years: Increase of 115 basis points to 4.19% per year (comparative rate of 2.86% per year*)
- Fixed Base Owner Occupied IO 70% 4 Years: Up 65 basis points to 4.79% (annual comparison rate of 3.30%*)
- Base Fixed Owner Occupied IO 80% 2 Years: Increase of 115 basis points to 4.49% per year (comparative rate of 3.17% per year*)
- Basic fixed investment IO 70% 2 years: Increase of 110 basis points to 4.19% pa (comparative rate of 2.86% pa*)
- Basic fixed investment IO 80% 4 years: Increase of 50 basis points to 5.09% per year (comparative rate of 3.61% per year*)
Around the field
Another challenger lender to ING raised fixed rates on home loans this week.
ING raised rates for both homeowners and investors by up to 25 basis points.
Notable changes to ING’s mortgage portfolio include:
- Orange Residential Advantage Fixed 5 Years ≤ 80%: Increase of 25 basis points to 4.24% per year (comparison rate of 3.29% per year*)
- Orange Residential Advantage Fixed 5 Years 90-95%: Increase of 25 basis points to 4.79% per year (annual comparison rate of 3.64%*)
- 5-year fixed P&I investment: Increase of 25 basis points to 4.44% per year (comparative rate of 3.49% per year*)
Other banks to move rates this week include Greater Bank, Suncorp, Bank SA, Bank Australia, Illawarra Credit Union and Summerland Credit Union.
Advertising
Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.
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Lender |
Rate type | Gap | Redraw | Ongoing charges | The initial costs | LVR | Lump sum reimbursement | Additional refunds | Pre-approval | ||||
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Variable | More details | |||||||||||
| FEATUREDLIMITED TIME OFFER | |||||||||||||
Smart Booster Home Loan Discounted Variable – 2 years (LVR
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Variable | More details | |||||||||||
| FEATURED100% COMPLETE CLEARING ACCOUNTNO APPLICATION FEES OR ON-GOING FEES | |||||||||||||
Low Rate Home Loan – Premium (Principal & Interest) (Owner Occupant) (LVR
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Variable | More details | |||||||||||
| FEATUREDZERO APPLICATION FEESCOMPENSATION WITHOUT COST | |||||||||||||
Homeowner Accelerates – Celebrate (LVR
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Variable | More details | |||||||||||
| FEATUREDAN EASY DIGITAL APPLICATION |
Careful variable real estate loan (capital and interest) (LVR
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Careful variable real estate loan (capital and interest) (LVR
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Variable | More details | |||||||||||
| FEATUREDREFINANCING IN MINUTES, NOT WEEKS | |||||||||||||
Owner Occupied Variable, Principal & Interest (Refinance Only) (LVR
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Variable | More details | |||||||||||
| FEATUREDBENEFIT FROM A REDUCED GREEN RATE* | |||||||||||||
Green real estate loan (capital and interest)
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Image by Wikimedia Commons
The entire market has not been taken into account in the selection of the products above. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.
