Both major banks and non-major lending institutions have raised their fixed rates over the past week. Westpac has started its second round of the month.

According to Catherine Mapusua, WLTH’s head lending officer, borrowers can expect for further increases in mortgage rates as the economy rebounds.

“Since lifting lockdowns in some of our largest cities, we have seen a pickup in core inflation, giving the RBA confidence to strive towards economic recovery,” Ms Mapusua said.

“Over the next few months, lenders will continue to assess borrowers’ capacity to repay their mortgage at a higher interest rate.”

These are the biggest moves made by the major banks during the week.

Westpac

For the second consecutive month, Westpac’s fixed rate offerings were adjusted. These changes were made to both investors and owners.

There were increases in loan terms. Here are the key changes:

  • Investment Fixed P&I 2 yrs 80%– 2.84% p.a. 55bps (4.84% Comparative rate
  • Investment Fixed P&I 3 yrs 80%– From 50bps to 3.19% per Annum (4.75% per A.A. Comparison rate
  • Fixed Options P&I 3 yrs 70%– Prices as low as 30bps and up to 2.79 per annum (4.18% p.a. (4.18% p.a.
  • Fixed Options P&I 2 yrs 95%– 25bps to 2.54% per year (4.35% p.a. Comparison rate

Westpac’s subsidiaries — Bank of Melbourne, BankSA, and St. George Bank — also rolled out changes to fixed rates.

NAB

NAB has made several changes to its line up. NAB has adjusted fixed rates for owner-occupier and investor under the Choice Package and Tailored Fixed Mortgage products.

  • Select Package Tailored Fixed – IO 3 yrs 150k+ – up by 30bps to 3.89% p.a. (4.63% p.a. Comparison rate
  • Select Package Tailored Fixed – P&I 3 yrs 150k+ – up by 51bps to 2.79% p.a. (4.03% p.a. Comparative rate
  • Inv Tailored Fixed – P&I 2 yrs – up by 40bps to 2.79% p.a. (4.82% p.a. (4.82% p.a.
  • Inv Tailored Fixed – P&I 3 yrs – up by 45bps to 3.09% p.a. (4.71% p.a. Comparative rate
  • Tailored Fixed – P&I 3 yrs – up by 51bps to 2.89% p.a. (2.91% p.a. Comparative rate

ANZ

ANZ was the fourth major player to alter the fixed rates.

The bank made many changes to its Fixed Rates for Breakfree Residential and Basic Investor Fixed Products.

  • Breakfree Residential Fixed 3 yrs ≤80% 40bps increase to 2.79 p.a. (3.37% p.a. Comparison rate
  • Residential Fixed 3 yrs ≤80%– Up to 2.94% per annum (4.08% p.a. (4.08% p.a.
  • Breakfree Investment Fixed 3 yrs ≤80%– 30bps to 2.99 p.a. (3.85% p.a. Comparison rate
  • Breakfree Investment Fixed 5 yrs ≤80%25bps Increase to 3.39% (3.92%/p.a. Comparable rate
  • Investment Fixed for 1 Year 80-90%– 20bps Increase to 2.79% per Annum (4.83% p.a. Comparison rate
  • Fixed Investment for 2 Years 80-90%– 2.89% p.a. (4.66% p.a. Comparative rate

Non-majors join this trend

Banks have also modified many non-major rates over the last week. Most of them followed the fixed rate increase trend.

Horizon Bank

  • Fixed Rate Home Loan 3 Year – up by 20bps to 2.49% p.a. (2.91% p.a. Comparison rate
  • Fixed Rate Investment Loan for 3 Years – up by 20bps to 2.74% p.a. (3.16% p.a. Comparative rate

Australian Military Bank

  • Fixed Rate for 2 years – up 20bps to 2.19% p.a. (2.97% p.a. Comparison rate
  • Fixed Rate 3 Year – up 30bps to 2.59% p.a. (3.0% p.a. Comparison rate

Bank of Sydney

Bank of Sydney has increased its Fixed Rates for the Expect More Home Loan Product 50bps. Below are some rates:

  • Expect More Residential Fixed 3 yrs P&I – 3.29% p.a. (3.46% p.a. Comparative rate
  • Expect More Residential Fixed 5 yrs P&I – 3.49% (3.59% p.a. Comparative rate
  • Expect More Investment Fixed 3 yrs P&I – 3.65% p.a. (3.95% p.a. Comparison rate
  • Expect More Investment Fixed 5 yrs P&I – 3.85% p.a. (4.05% p.a. (4.05% p.a.

Athena Home Loans

  • Investor Fixed P&I 3 yrs 70-80%40bps increase up to 3.39% per annum (2.68% p.a. Comparison rate
  • Investor Fixed P&I 2 yrs ≤60% 40bps increase to 3.19% per annum (2.53% p.a. Comparison rate
  • Fixed IO 2 yrs ≤60%65bps increase to 3.6% p.a. (2.33% p.a. Comparison rate
  • Fixed P&I 2 yrs 70-80%– 40bps – 2.99% p.a. (2.21% p.a. Comparison rate

Bank Australia

  • Investment Basic P&I Fixed 3 yrs <80%– Increased 15bps to 2.5% per annum (2.50% p.a. Comparison rate
  • Investment Premium Package P&I Fixed 3 yrs <80%– Increased 15bps to 2.5% per annum (3.14% p.a. Comparison rate
  • Premium Package Fixed 3 yrs <70%– Up to 10% to 2.1% p.a. (2.91% p.a. Comparison rate
  • Basic Fixed 3 yrs <80%– Increased from 10bps to 23% (2.49% p.a. Comparative rate

ING

ING is one of the few lenders that has reduced its variable rates over the past week.

  • Inv Mortgage Simplifier IO 500k+ – 20bps decrease to 2.69% p.a. (2.71% p.a. Comparative rate
  • Inv Mortgage Simplifier PI 150-499k – down 10bps to 2.29% p.a. (2.32% p.a. Comparison rate
  • Mortgage Simplifier PI 500-999k 80%– Down 25bps to 1.99% (2.02% per annum). Comparison rate
  • Fixed IO investment for 5 years – up 45bps to 3.39% p.a. (4.62% p.a. Comparison rate
  • Investment Fixed P&I 3 yrs – up 35bps to 2.69% p.a. (4.25% p.a. (4.25% p.a.

Adelaide Bank

  • SmartFix P&I 3 yrs Special Offer – up by 10bps to 2.4% p.a. (2.93% p.a. Comparison rate
  • SmartFix P&I 5 yrs – up by 11 bps to 3.19% p.a. (3.18% p.a. Comparison rate
  • SmartSaver Fixed P&I 3 yrs Special Offer – up 10bps to 2.39% p.a. (2.73% p.a. Comparison rate
  • SmartSaver Fixed P&I 5 yrs – up 11bps to 3.19% p.a. (2.99% p.a. (2.99% p.a.

BOQ

  • Residential Fixed 3 yrs Discount Rate <80%– 50bps up to 2.799% p.a. (3.18% p.a. Comparison rate
  • Investment Fixed P&I 3 yrs Discount Rate <80%– 30bps up to 2.89% per a year (3.34%/p.a. Comparison rate
  • Investment Clear Path Variable Home Loan P&I Special Offer ≤80%– 20bps reduction to 2.69% per annum (2.84% p.a. Comparative rate
  • Investment Economy P&I Special Offer 70-80%– Drop 30bps to 2.4% per annum (2.61% p.a. Comparison rate

Bendigo Bank

  • Complete Home Loan Fixed P&I 2 yrs – up by 20bps to 2.19% p.a. (2.61% p.a. Comparison rate
  • Complete Home Loan Fixed P&I 3 yrs – up by 20bps to 2.54% p.a. (2.68% p.a. Comparative rate
  • Complete Home Loan Fixed P&I 4 yrs – up by 10bps to 2.84% p.a. (2.79% p.a. Comparison rate
  • Complete Home Loan Fixed P&I 5 yrs – up by 10bps to 3.09% p.a. (2.92% p.a. Comparison rate

TicToc Home Loans

  • Live-in Fixed P&I 3 yrs – up by 20bps to 2.34% p.a. (2.01% p.a. (2.01% p.a.
  • Live-in Fixed P&I 5 yrs – up by 30bps to 3.09% p.a. (2.37% p.a. Comparison rate

Aussie

  • Edge P&I Fixed 4 yrs – up by 26bps to 2.89% p.a. (2.78% p.a. Comparison rate
  • Edge P&I Fixed 5 yrs – up by 21bps to 3.14% p.a. (2.89% p.a. Comparison rate

AMP Bank

  • Basic Fixed P&I 3 yrs – up by 45bps to 2.79% p.a. (2.89% p.a. Comparison rate
  • Basic Fixed P&I 5 yrs – up by 40bps to 3.19% p.a. (3.04% p.a. Comparison rate
  • Investment Basic Fixed P&I 2 yrs – up by 39bps to 2.6% p.a. (3.18% p.a. Comparison rate
  • Investment Basic Fixed P&I 3 yrs – up by 10bps to 2.99% p.a. (3.23% p.a. Comparison rate

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