Australia’s two biggest lenders recently made substantial changes to their rate offerings, in anticipation of a likely rate hike by the Reserve Bank of Australia (RBA).
ANZ lowered the variable rate for Simplicity Plus loans to residential homeowners. However, investors saw an increase in rates.
Westpac recently increased its fixed rates to investors and owners-occupiers.
Westpac has updated their February 2023 projections. The central bank is now expected to make an August move.
Revised projections show an increase in 15 basis points. This would translate into a target cash rate of 0.2%.
Justin Smirk (Westpac’s senior economic advisor) stated that recent released inflation data exceeded the RBA’s forecasts.
“Headline inflation came in stronger than expected at 1.3% exceeding the top of the range forecast at 1.2%; Westpac and the market were forecasting 1.1%,” he said.
Bill Evans, Westpac economist, said that inflation’s direction could indicate a potential rate increase by the RBA.
“We expect that underlying inflation will reach 2.4% in 2021 and lift to 2.6% in March 2022 and 2.9% in June 2022,” he said.
“This will mean that by the time of the August meeting the Board will have observed three consecutive quarters in which annual underlying inflation has achieved or exceeded its target.”
These rate changes were made by ANZ & Westpac in the last week.
ANZ
|
ANZ Loan Product |
Change |
Advertisement Rate Change |
Comparison Rate |
|
Investment Simplicity Plus IO <70% Special Offer |
+10bps |
3.09% p.a. |
3.29% p.a. |
|
Investment Simplicity Plus P&I <70% Special Offer |
+20bps |
2.99% p.a. |
3.03% p.a. |
|
Simplicity Plus P&I <80% Special Offer |
-10bps |
2.29% p.a. |
2.33% p.a. |
Westpac
|
Westpac Loan Products |
Change |
New Advertised Rate |
Comparison Rate |
|
Fixed Options P&I 5 yrs 95% |
+20bps |
3.89% p.a. |
4.44% p.a. |
|
Fixed Options P&I 5 yrs 70% |
+20bps |
3.79% p.a. |
4.34% p.a. |
|
Investment Fixed P&I 5 yrs 70% |
+15bps |
3.89% p.a. |
4.70% p.a. |
|
Investment Fixed P&I 5 yrs 70% |
+15bps |
3.89% p.a. |
4.70% p.a. |
BankSA
|
BankSA Loan Products |
Change |
Changes in the Advertisement Rate |
Comparison Rate |
|
Residential Fixed P&I 5 yrs |
+20bps |
3.84% p.a. |
4.43% p.a. |
|
Residential Fixed P&I 3 yrs |
+15bps |
3.29% p.a. |
4.39% p.a. |
|
Advantage Package Residential Fixed P&I 5 yrs 150k+ |
+20bps |
3.69% p.a. |
3.84% p.a. |
|
Advantage Package Investment Fixed P&I 3 yrs 150k+ |
+10bps |
3.34% p.a. |
4.09% p.a. |
|
Advantage Package Investment Fixed P&I 5 yrs 150k+ |
+15bps |
3.79% p.a. |
4.21% p.a. |
St. George
|
St. George Loan Product |
Change |
Advertisement Rate Change |
Comparison Rate |
|
Residential Fixed P&I 3 yrs 60-80% |
+15bps |
3.24%p.a. |
4.35% p.a. |
|
Residential Fixed P&I 5 yrs 60-80% |
+20bps |
3.79% p.a. |
4.37% p.a. |
|
Investment Fixed P&I 3 yrs 60-80% |
+10bps |
3.44% p.a. |
4.80% p.a. |
|
Investment Fixed P&I 5 yrs 60-80% |
+15bps |
3.89% p.a. |
4.75% p.a. |
Bank of Melbourne
|
Bank of Melbourne Loan Product |
Change |
Changes to the Advertisement Rate |
Comparison Rate |
|
Residential Fixed P&I 5 yrs <60% |
+20bps |
3.74%p.a. |
4.325% p.a. |
|
Residential Fixed P&I 3 yrs 60-80% |
+15bps |
3.24% p.a. |
4.33% p.a. |
|
Investment Fixed P&I 5 yrs 60-80% |
+15bps |
3.89% p.a. |
4.75% p.a. |
|
Investment Fixed P&I 5 yrs 95% |
+15bps |
3.94% p.a. |
4.80% p.a. |
Summerland Credit Union
|
Summerland Credit Union Loan |
Change |
Advertisement Rate Change |
Comparison Rate |
|
Standard Fixed 1 Year |
+30bps |
2.29% p.a. |
4.46% p.a. |
|
Standard Fixed 2 year |
+20bps |
2.69% p.a. |
4.34% p.a. |
|
Standard Fixed 3 years |
+30bps |
3.04% p.a. |
4.29% p.a. |
|
Standard Investment Fixed for 3 years |
+30bps |
3.39% p.a. |
4.72% p.a. |
|
Offset Home Loan <80% 250k+ Special Offer |
-20bps |
2.29% p.a. |
2.47% p.a. |
bcu
|
bcu Loan Product |
Change |
Changes to the Advertisement Rate |
Comparison Rate |
|
Fixed IO Investment for 3 Years |
+20bps |
2.84% p.a. |
3.86% p.a. |
|
Investment Fixed P&I 3 yrs |
+20bps |
2.79% p.a. |
3.85% p.a. |
|
Residential Fixed P&I 2 yrs |
+15bps |
2.19% p.a. |
3.73% p.a. |
|
Residential Fixed P&I 4 yrs |
+5bps |
2.94% p.a. |
3.69% p.a. |
IMB
|
IMB Loan Product |
Change |
Changes in the Advertisement Rate |
Comparison Rate |
|
Residential Fixed P&I 3 yrs ≤80% |
+32bps |
2.59% p.a. |
2.74% p.a. |
|
Residential Fixed P&I 5 yrs ≤80% |
+30bps |
3.09% p.a. |
2.90% p.a. |
|
Investment Fixed P&I 3 yrs |
+20bps |
2.74% p.a. |
3.20% p.a. |
|
Investment Fixed P&I 5 yrs |
+20bps |
3.38% p.a. |
3.39% p.a. |
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