Get Ready, Lenders Are Raising Fixed Rates On Home Loans And Accelerating

In a busy week for home loan rate movement, AMP, Athena, ME and a host of other customer-owned banks sent their fixed home loan rates into orbit.

As the Big Four took a week off from the mortgage rate hike holiday, a number of lenders stepped up by raising their fixed mortgage rates for both principal and interest (P&I) and interest-only options. (IO).

See also: Is it too late to settle your mortgage?

GPA

After cutting term deposit rates by 55 basis points earlier in the week, the AMP increased fixed mortgage rates by up to 60 basis points.

Despite the lifting of fixed mortgage rates, AMP Chief Economist Shane Oliver recently told Savings.com.au “the real impact will come when the Reserve Bank starts raising mortgage rates.” interest later this year”.

Across AMP’s home loan portfolio, these increases include:

  • Residential Professional Plan P&I Fixed 3 Years ≤80%: Increase of 60 basis points to 3.44% per annum (comparative rate of 2.90% per annum*)
  • Residential Professional Plan P&I Fixed 3 Years 80-90%: Increase of 60 basis points to 3.64% per year (comparative rate of 3.09% per year*)
  • Basic fixed P&I 3 years: Increase of 60 basis points to 3.64% per annum (comparative rate of 3.11% per annum*)
  • Basic fixed P&I 5 years: Increase of 60 basis points to 4.04% per year (comparative rate of 3.38% per year*)
  • Base investment P&I fixed 3 years: Increase of 60 basis points to 3.69% per year (comparative rate of 3.41% per year*)
  • Fixed base investment IO 3 years: Increase of 35 basis points to 3.54% per annum (comparative rate of 3.00% per annum*)

Athena

Digital lender Athena has raised fixed mortgage rates across its portfolio by up to 65 basis points.

This comes exactly one month after Athena reduced variable rates for all new and existing customers for the ninth time in three years.

Across Athena’s home loan portfolio, these increases included:

  • Fixed P&I 3 years ≤60%: Increase of 50 basis points to 3.89% per year (comparative rate of 2.38% per year*)
  • Fixed I/O 3 years ≤60%: Increase of 40 basis points to 3.99% per year (comparative rate of 2.42% per year*)
  • P&I fixed 3 years 70-80%: Increase of 50 basis points to 3.99% per year (comparative rate of 2.43% per year*)
  • Fixed Investor IO 3 Years ≤60%: Increase of 65 basis points to 4.04% per year (comparative rate of 2.67% per year*)
  • 3-year fixed P&I investor ≤60%: Increase of 65 basis points to 3.94% per year (comparative rate of 2.62% per year*)

Bank ME

After a fixed rate hike just over two weeks ago, ME Bank raised fixed rates on home loans for homeowners and investors by up to 30 basis points on Wednesday.

Across ME Bank’s home loan portfolio, these increases included:

  • OO fixed flexible 3 years P&I: Increase of 25 basis points to 3.24% per annum (comparative rate of 4.05% per annum*)
  • OO fixed flexible 4 years P&I: Increase of 20 basis points to 3.44% per year (comparative rate of 4.04% per year*)
  • Fixed flexible investment 3 years P&I: Increase of 20 basis points to 3.34% per year (comparative rate of 4.63% per year*)
  • Fixed flexible investment 4 years P&I: Increase of 30 basis points to 3.64% per annum (comparative rate of 4.60% per annum*)
  • Flexible Investment Fixed 3 Years IO: Increase of 15 basis points to 3.49% per year (comparative rate of 4.67% per year*)
  • Flexible Investment Fixed 4 Years IO: Increase of 20 basis points to 3.84% per year (comparative rate of 4.67% per year*)
  • Member Package Flexible Fixed OO 3 Years P&I: Increase of 25 basis points to 3.09% per year (comparative rate of 2.84% per year*)
  • Member Package Investment Flexible Fixed 3 Years P&I: Increase of 20 basis points to 3.19% per year (comparative rate of 3.48% per year*)

Permanent Newcastle

The big, customer-owned bank raised a number of fixed home loan rates for homeowners and investors by up to 60 basis points.

Highlights of these increases in Newcastle Permanent’s home loan portfolio included:

  • P&I Fixed Residential 4 Years: Increase of 30 basis points to 3.89% per year (comparative rate of 4.17% per year*)
  • Fixed residential P&I 5 years: Increase of 40 basis points to 4.19% per year (comparative rate of 4.26% per year*)
  • Fixed residential IO 4 years: Increase of 50 basis points to 4.49% per year (comparative rate of 4.36% per year*)
  • Fixed residential IO 5 years: Increase of 60 basis points to 4.79% per year (comparative rate of 4.50% per year*)
  • 4-year fixed P&I investment: Increase of 30 basis points to 4.09% per year (comparative rate of 4.46% per year*)

bcu

After a 15 basis point increase in fixed rates for home loans two weeks ago, the credit union raised fixed rates for homeowners and investors by up to 25 basis points.

Highlights of these increases across the bcu’s housing loan portfolio included:

  • Fixed residential P&I 3 years: Increase of 25 basis points to 2.79% per year (comparative rate of 3.73% per year*)
  • Fixed residential IO 3 years: Increase of 25 basis points to 3.34% per annum (comparative rate of 3.87% per annum*)
  • Fixed Investment IO 3 Years: Increase of 20 basis points to 3.14% per annum (comparative rate of 3.94% per annum*)

Great South Bank

Great Southern Bank has raised a number of fixed home loan rates for homeowners and investors by up to 55 basis points.

Highlights of these increases across Great Southern Bank’s home loan portfolio included:

  • Fixed P&I 2 years: Increase of 55 basis points to 2.89% per year (comparative rate of 3.65% per year*)
  • P&I fixed 3 years: Increase of 50 basis points to 3.34% per annum (comparative rate of 3.70% per annum*)
  • Investment fixed P&I 3 years: increase of 50 basis points to 3.44% pa (comparative rate of 4.04% pa*)

Other institutions owned by customers of Qudos Bank, Auswide Bank, Beyond Bank, Gateway Bank have all increased the fixed rates on home loans in their portfolios by up to 50 basis points.

Speculation of an RBA cash rate hike later in the year could trigger further fixed rate hikes.

Read more: What is a lock rate?


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The whole market has not been taken into account in the selection of the above products. 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.

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