More home loan rate rises as the cycle turns

More lenders are raising interest rates despite the Reserve Bank deciding this week to leave the official cash rate unchanged for December 2016 and January 2017.

The Reserve Bank of Australia has left official rates at 1.5 per cent, a historically low level. Sydney Futures Market traders are currently pricing in a 12 per cent chance the RBA will raise rates in 2017, according to ABC News. Twenty leading Australian economists polled by Reuters expect a RBA rate hike by early 2018. Fifteen expect a rate cut. The Reserve Bank next meets in February 2017 to review rates.


What is the average home loan rate in Australia?

The average standard variable home loan rate in Australia is now (in December 2016) 4.61 per cent. On an average 25 year, $300,000 mortgage, that rate translates to average monthly home loan repayments of $1,686.28.

The average three year fixed rate is 4.16 per cent with monthly repayments of $1,610.13 on that same average mortgage.


What is the lowest home loan rate now available in Australia?

The lowest standard variable home loan rate now available in Australia is 3.25 per cent from Homestar’s Honeymoon Owner Occupied Loan.

The lowest three year fixed rate in the market is My Credit Union’s 3.49 per cent on their “Fixed Rate Special.”


Which lenders are raising home loan interest rates?

On Friday, Commonwealth Bank announced a rate rise of 0.20 percentage points on its three year fixed rate home loans to 4.24 per cent. CBA’s five year rate has moved up by 0.60 percentage points to 4.74 per cent. Westpac also raised investor rates two weeks ago. This week, Suncorp Bank has announced increases to variable home loan interest rates on new and existing investor home loans. Rates will rise 0.15 percentage points on its Back to Basics, Standard Variable and Access Equity products. Suncorp’s Standard Variable rate for investor loans is now 5.87 per cent.

Since the first of November, twenty lenders have moved their home loan rates up.


You can research and compare variable rate home loans here – Compare Variable Home Loans

You can research and compare fixed rate home loans here – Compare Fixed Home Loans

UBank has three month term deposits delivering 2.71 per cent.

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