Three big banks have recently adjusted their interest rates following the Reserve Bank of Australia (RBA)’s decision to hold the cash rate at its current historic low of 0.1%.

RBA suggested that a potential rate rise could be made by 2023. This is more than the 2024 increase.

Major banks predict a faster rate rise, however. CommBank predicts that the first rate increase will occur in November 2022.

CommBank

CommBank has made changes to its fixed rates for investors as well as owner-occupiers. Here are some major changes:

  • Residential Fixed P&I 3 yrs40bps increase up to 2.84% per annum (4.25% p.a. Comparative rate
  • Residential Fixed P&I 4 yrs– From 50bps up to 3.04% per annum (4.19% per annum). Comparative rate
  • Investment Fixed P&I 3 yrs– Increased by 30bps to 2.844% per annum (4.67% p.a. Comparative rate

ANZ

ANZ recently reduced variable rate in its Simplicity Plus Program. These rates are available to both investors and owner-occupiers.

  • Simplicity Plus P&I <70% Special Offer– 43bps down to 2.29% per year (2.33% p.a. Comparative rate
  • Investment Simplicity Plus P&I <70% Special Offer – 33% reduction to 2.799% per annum (3.83% p.a. Comparative rate
  • Simplicity Plus P&I 70-80% Special Offer – This is a drop of 23bps to 2.49% per year (2.53% p.a. Comparative rate
  • Investment Simplicity Plus P&I 70-80% Special Offer – From 2.99% to 13.0bps p.a. (3.03% p.a. Comparative rate

Westpac

Westpac announced an increase in the rate of its fixed loans products for owners and investors by up to 21bps

  • Fixed Options P&I 3 yrs 95% LVR– From 21bps up to 2.59% p.a. (4.20% p.a. Comparative rate
  • Investment Fixed P&I 3 yrs 80% LVR– From 20bps to 2.89% per year (4.67% p.a. Comparative rate
  • Premier Advantage Fixed Options P&I 3 yrs 95% 150k+– From 3.48% per annum to 21bps, 2.39% per a year Comparative rate
  • Premier Advantage Investment Fixed P&I 3 yrs 80%– From 20bps to 2.69% per year (3.94% p.a. Comparative rate

Its subsidiaries made changes as well to their offerings. They raised fixed rates and decreased variable home loans.

BankSA

  • Residential Fixed P&I 3 yrs– 31bps to 2.544% p.a. (4.20% p.a. Comparative rate
  • Advantage Package Residential Fixed P&I 3 yrs 150k+– 31bps increase up to 2.39% per annum (3.45% p.a. Comparative rate
  • Investment Fixed P&I 3 yrs 20bps increase to 2.844% p.a. (4.68% p.a. Comparative rate
  • Advantage Package Investment Fixed P&I 3 yrs 150k+20bps increase to 2.699% per annum (3.93% per year). Comparative rate
  • Basic Promo Variable P&I– At 2.19% per annum, the rate is down by 10bps (2.21% p.a. Comparative rate
  • Investor Basic Promo Variable P&I– Drop 10bps to 2.49p.a. (2.51% p.a. Comparative rate

St George

  • Residential Fixed P&I 3 yrs 60-80% LVR31bps increase to 2.49% per annum (4.15% p.a. Comparative rate
  • Residential Fixed P&I 3 yrs >80% LVR– 31bps to 2.544% p.a.  (4.20% p.a. Comparative rate
  • Investment Fixed P&I 3 yrs 60-80% LVR– 20bps rise to 2.79% per year (4.63% p.a. Comparative rate
  • Investment Fixed P&I 3 yrs >80% LVR– Up to 2.4% per year (by 20bps). (4.68% p.a. Comparative rate
  • Investment Basic Promo Variable P&I 60-80% LVR– Drop 10bps to 2.49p.a. (2.51% p.a. Comparative rate
  • Investment Basic Promo Variable P&I >80% LVR– Down 10bps, 2.544% p.a. (2.56% p.a. Comparative rate
  • Basic Promo Variable P&I 60-80% LVR– Down 10bps at 2.19% per annum (2.21% p.a. Comparative rate
  • Basic Promo Variable P&I >80% LVR– Down 10bps at 2.244% per annum (2.26%/p.a. Comparative rate

Bank of Melbourne

  • Residential Fixed P&I 3 yrs <60% LVR– 31bps to 24% p.a. (4.09% p.a. Comparative rate
  • Residential Fixed P&I 3 yrs 60-80% LVR31bps to 2.499% per annum (4.14% P.A. Comparative rate
  • Residential Fixed P&I 3 yrs >80% LVR– 31bps – 2.544% per annum (4.19% p.a. Comparative rate
  • Investment Fixed P&I 3 yrs 60% LVR– From 2.744% to 220bps p.a. (4.58% p.a. Comparative rate
  • Investment Fixed P&I 3 yrs 60-80% LVRMaximum 20bps to 2.79% per year (4.63% p.a. Comparative rate

Auswide Bank

Variable rates were reduced by Auswide Bank on its basic home loan product as well as the Freedom Package. These changes can be accessed by both investors and owners-occupiers.

These are only a few changes that were made.

  • Basic Home Loan 75-90% LVR– 20bps decrease to 2.39% p.a. (2.41% p.a. Comparative rate
  • Basic Investment Loan P&I 75-90% LVR– 20bps decrease to 2.49 p.a. (2.51% p.a. Comparative rate
  • Basic Investment Loan IO 75-90% LVR– At 2.79% per annum, the price has fallen by 10bps (2.81% p.a. Comparative rate
  • Freedom Package Variable P&I 75-90% LVR Special Offer– Drop 30bps to 2.59 % per annum (3.01% P.A. Comparative rate
  • Freedom Package Investment Variable P&I 75-90% LVR Special Offer– 20bps reduction to 2.79% per annum (3.21% p.a. Comparative rate

bcu

Members-owned bcu tend to follow the trend of decreasing variable rates and increasing fixed rates.

Here are some examples:

  • OMG! Variable Rate P&I 60-80% LVR – down by 10bps to 2.29% p.a. (2.29% p.a. Comparative rate
  • Residential Fixed P&I 3 yrs– From 2.299% to 10bps p.a. (3.61% p.a. Comparative rate
  • Investment Fixed P&I 3 yrs20bps increase to 2.49 p.a. (3.77% p.a. Comparative rate

HSBC

HSBC has decreased its variable rate for owners-occupiers and investors.

  • Home Value IO <80% Promotional Offer– – 61% to 2.37% per annum (2.23 p.a. Comparative rate
  • Home Loan Package Variable IO <80% Promotional Offer– 2.17% per annum, down by 61bps (2.73%) Comparative rate
  • Home Value P&I 80-90% Promotional Offer– Down 27bps to 2.227% per annum (2.28% p.a. Comparative rate
  • Home Loan Package Investment Variable: IO80-90% Promotional Offer– 37bps reduction to 2.87% p.a. (3.13% p.a. Comparative rate
  • Home Loan Package Investment Variable P&I 80-90% Promotional Offer32bps drop to 2.67% per annum (3.11% p.a. Comparative rate

Recent reductions in fixed rates

Here are some other lenders which have increased their fixed rate during the week.

Bankwest

  • Complete Home Loan Fixed Rate Owner Occupied P&I 3 yrs ≤80% LVR 72bps increase to 2.799% per annum (3.39%/a). Comparative rate
  • Complete Home Loan Fixed Rate Owner Occupied P&I 4 yrs 80-90% LVR– Drop 30bps to 3.299% per annum (3.54%/p.a. Comparative rate
  • Complete Home Loan Fixed Rate Investment P&I 3 yrs 200k+45bps Increase to 2.79% per Annum (4.06% p.a. Comparative rate

AMP Bank

  • Basic Fixed P&I 2 yrs– Increased 30bps to 2.344% per annum (2.83% p.a. Comparative rate
  • Professional Package Residential Fixed P&I 2 yrs 80-90% LVR– From 30bps to 2.34% per year (2.88% p.a. Comparative rate
  • Professional Package Residential Fixed P&I 2 yrs ≤80% LVR– 30% to 2.14 p.a. (2.60% p.a. Comparative rate

Hume Bank

  • myBlue P&I Fixed 3 yrs 60-80% LVR– 10bps up to 2.24% per anum (2.32% p.a. Comparative rate
  • myBlue P&I Fixed 3 yrs 80-90% LVR– Increased 15bps to 2.39p.a. (2.43% p.a. Comparative rate
  • myBlue Investments IO Fixed 1 Year 60-80% LVR– decreased by 10bps, to 2.544% per annum (2.68% p.a. Comparative rate
  • myBlue Investments IO Fixed 2 Year 60-80% LR– Down 10bps to 2.599% per annum (2.67%/p.a. Comparative rate

Citi

  • Mortgage Plus Investment Standard Fixed P&I 3 yrs 80% 350k+35bps increase to 2.899% p.a. (3.17% p.a. Comparative rate
  • Mortgage Plus Standard Fixed P&I 3 yrs 80% 350k+35bps to 2.59 p.a. Comparative rate

IMB

  • Investment Fixed P&I 5 yrs– 20bps to 2.99% per year (3.41% p.a. Comparative rate
  • Residential Fixed IO for 4 Years– Up to 10bps up to 3.84% per Annum (3.35% p.a. Comparative rate
  • Residential Fixed IO 5 years– Up To 3.84% p.a. (3.41% p.a. Comparative rate

Arab Bank Australia

  • Residential Fixed 3 yrs ≤60%– Maximum 15bps up to 2.25% annum (3.25% pa. Comparative rate
  • Investment Fixed 3 yrs ≤60%– From 20bps to as high as 2.7% per annum (3.81% per annum). Comparative rate

Qudos Bank

  • Investment Fixed P&I 3 yrs 80%– From 20bps to 2.59 p.a. (3.08% p.a. Comparative rate
  • Fixed IO for Owner Occupied 1 year 80%– 20bps reduction to 2.39% per year (2.76% p.a. Comparative rate
  • Owner Occupied Fixed IIo 2 yrs 88%– Drop 10bps to 2.49 p.a. (2.74% p.a. Comparative rate

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