Three other banks majors, including ANZ have joined the trend to raise a longer-term fixed rate.

This is after recent fixed rate increases made by CommBank & Westpac in the past two weeks.

Brodie Haupt (CEO at WLTH) said that this trend could result in further increases of mortgage interest rates.

“With record numbers of Australians taking advantage of this, borrowers may be in for some interest rate shock that could pressure their finances,” he told Your Mortgage.

Mr Haupt said it’s a good thing that some homeowners were able to build up savings amid the pandemic, which they can use as buffer against future hikes.

“With that being said, there is time to brace before the impact of rising rates is felt, giving households time to prepare for potential repayment increases,” he said.

“Rising interest rates may find us having to readjust – from experiencing some of the lowest mortgage repayments in decades to something near the average.”

ANZ

Similar to Westpac or CommBank, ANZ increased the rates for its fixed rates over the long term while lowering their one-year rates.

The 35 basis points increase in the fixed rate for three years that owner-occupiers received was the largest change.

  • 3-year fixed breakfree housing – 2.44% p.a. (3.43% p.a. Comparative rate
  • Residential Fixed 3 yrs ≤80% – 2.59% p.a. (3.99% p.a. Comparative rate

ANZ also increased its three-year fixed interest rate for investors by 25bps

  • Investment Fixed for 3 Years 80-90% – 2.89% p.a. (4.49% p.a. Comparative rate
  • Investment Fixed IO 3 yrs ≤80% – 3.04% p.a. (4.50% p.a. Comparative rate

ANZ also reduced its 1-year rates for several fixed-rate products.

  • Breakfree Residential Fixed 1 yr ≤80%– Reduced by 5bps to 1.99% per year (3.33% p.a. Comparative rate
  • Breakfree Residential Fixed 1 Year 80-90%– 3.51% p.a. – lowered 5bps to 2.04% Comparative rate
  • Investment Fixed 1 yr ≤80%– Down 15bps at 2.54 % per annum (4.81% p.a. Comparative rate
  • Residential Fixed 1 yr ≤80%– 15bps decrease to 2.04% p.a. (4.23% p.a. Comparative rate
  • Residential Fixed 1 year 80-90%– 15bps decrease to 2.19% per annum (4.23%/p.a. Comparative rate

86 400

Australia’s first smartbank 86400 raised interest rates both for investors and owners who have taken out fixed rates over a longer duration.

It was the most significant change. three-year fixed rate for owner-occupiers paying P&IThe index rose by 34bps, to 2.299% p.a. (2.58% p.a. Comparative rate

These are just a few more changes.

  • Own Home Loan Fixed P&I 2 yrs ≤80%– Rates as high as 10bps to 1.99% per a year (2.53% per annum). Comparative rate
  • Own Home Loan Fixed P&I 5 yrs ≤80%– 29bps up to 2.79% p.a. (2.77% p.a. Comparative rate
  • Own Home Loan Fixed P&I 2 yrs 80-85%– 10bps up to 2.19% per annum (2.93%/p.a. Comparative rate
  • Own Home Loan Fixed P&I 3 yrs 80-85%– 30bps upto 2.49% per year (2.96% p.a. Comparative rate
  • Own Home Loan Fixed P&I 5 yrs 80-85%– 29bps up to 2.99% per annum (3.12%/p.a. Comparative rate
  • Investment Own Home Loan Fixed P&I 3 yrs– From 25bps up to 2.39% per a year (2.82% per a.m. Comparative rate
  • Investment Own Home Loan Fixed P&I 5 yrs– Prices range from 15bps up to 2.99% p.a. (3.03% p.a. Comparative rate

AMP Bank

AMP Bank has increased the fixed interest rate of its Professional Package product to offer three-years to owner-occupiers. This was done in response to investors shifting to lower variable rates.

  • Professional Package Residential Fixed P&I 3 yrs ≤80%Up to 16bps per annum to 2.14% (or 2.65% p.a. Comparative rate
  • Professional Package Residential Fixed P&I 3 yrs 80-90%– From 2.91% to 16bps per annum, 2.34% per annual Comparative rate

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