Adjustments were made across various home loan products, including those with variable interest rates, fixed interest rates, and for products with offset accounts.
The latest movements made by the three players came in at a time when changes in home loan rates were not expected as much as they would be after the RBA convenes in February.
Considering the direct effect of cash rate on interest rates lenders charge to borrowers, customers may get a reprieve should the cash rate hold steady at 4.35%.
Industry experts, except for NAB economists, don’t expect another rate hike, especially after the latest CPI release revealed the annual inflation softened to 4.3% in November.
Whether there’s an interest rate hike or not next month, these are the home loan interest rate adjustments these banks made at the beginning of the new year.
Keep in mind these rate changes are likely only for new customers.
Auswide Bank increases variable home loan rates by up to 20 bps
New customers at Auswide Bank are about to pay more in interest rates whether they have a basic home loan or a Freedom Package.
The bank’s Freedom Package comes with an offset account.
Owner-occupier home loan products with a loan-to-value ratio (LVR) between 80% and 90% had rates up by 20 basis points (bps).
Meanwhile, investors should take note of the 20 bps increase on both basic and Freedom Package home loans (LVR 80%-90%).
Here are the details for Auswide Bank’s interest rate changes for owner-occupiers:
|
Product |
Increase |
New rate |
|
Basic Home Loan (<60% LVR) |
10 bps |
6.09% p.a. (6.11% p.a. comparison rate*) |
|
Basic Home Loan (60%-80% LVR) |
15 bps |
6.14% p.a. (6.16% p.a. comparison rate*) |
|
Basic Home Loan (80%-90% LVR) |
20 bps |
6.54% p.a. (6.56% p.a. comparison rate*) |
|
Freedom Package (<60% LVR) |
10 bps |
6.19% p.a. (6.53% p.a. comparison rate*) |
|
Freedom Package (60%-80% LVR) |
15 bps |
6.24% p.a. (6.58% p.a. comparison rate*) |
|
Freedom Package (80%-90% LVR) |
20 bps |
6.64% p.a. (6.98% p.a. comparison rate*) |
For investors, here are the rate changes:
|
Product |
Increase |
New rate |
|
Basic Home Loan (<60% LVR) |
10 bps |
6.44% p.a. (6.46% p.a. comparison rate*) |
|
Basic Home Loan (60%-80% LVR) |
15 bps |
6.59% p.a. (6.61% p.a. comparison rate*) |
|
Basic Home Loan (80%-90% LVR) |
20 bps |
6.84% p.a. (6.86% p.a. comparison rate*) |
|
Freedom Package (<60% LVR) |
10 bps |
6.54% p.a. (6.88% p.a. comparison rate*) |
|
Freedom Package (60%-80% LVR) |
15 bps |
6.69% p.a. (7.03% p.a. comparison rate*) |
|
Freedom Package (80%-90% LVR) |
20 bps |
7.14% p.a. (7.47% p.a. comparison rate*) |
Regional Australia Bank ups offset home loan rates by as much as 21 bps
Regional Australia Bank hiked the interest rates offered on its Mortgage Offset (80%-90% LVR) product for both owners and investors.
Changes were made for customers making either principal and interest (P&I) or interest-only (IO) repayments.
Rate adjustments for owner-occupiers include:
- Mortgage Offset (80%-90% LVR) with P&I payments now has 6.42% p.a. (6.45% p.a comparison rate*)
- For interest-only Mortgage Offset (80%-90% LVR) loans, the rate is now up to 6.67% p.a. (6.47% comparison rate*)
Changes for investors with the offset home loan product:
- Customers making P&I payments on their Mortgage Offset (80%-90% LVR) have an increased rate of 6.87% p.a. (6.90% comparison rate*)
- The rate for the same product with IO payments is now 7.12% p.a. (6.92% comparison rate*)
Bank of China ups fixed rates offered to new borrowers
Buyers of owner-occupied properties seeking a fixed-rate loan can get a 6.39% p.a. interest rate, up 10 basis points, from the Bank of China.
That rate is offered for customers signing on for a one-, two-, and three-year fixed rate period.
|
Term length |
Increase |
New rate |
|
One year |
10 bps |
6.39% p.a. (8.34% p.a. comparison rate*) |
|
Two years |
10 bps |
6.39% p.a. (8.14% p.a. comparison rate*) |
|
Three years |
10 bps |
6.39% p.a. (7.96% p.a. comparison rate*) |
Photo by Tierra Mallorca on Unsplash
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