The home loan rate cycle has turned-up

For the first time in many months, there were more fixed home loan rate rises in November 2016 than rate cuts. More lenders are jacking up variable and fixed home loan rates and financial experts are predicting that now maybe the bottom of the rate cycle.2016.


Just one month ago, the futures market had priced in more rate cuts from the Reserve bank in early 2017, but those expectations are turning. More economists are now predicting that the next move in official rates may be up.


Now might be a good time to think about locking a low fixed rate for the next few years.


Which lenders are raising variable home loan rates?


In November 2016, Westpac increased its basic variable introductory home loan rate by 0.10 percentage points and the ongoing variable rate by 0.20 percentage points.

Bank of Sydney increased its variable package home loan rate by 0.30 percentage points to 4.14 per cent for loans with loans-to-valuation ratios between 80 and 90 per cent. Bank of Sydney also increased variable rates on loans with LVRs under 80 per cent by 0.15 percentage points to 3.94 per cent.



Community First Credit Union increased its Honeymoon Home Loan by 0.70 percentage points to 5.17 per cent for owner-occupiers and by 0.70 percentage points to 5.32 per cent for investors.

ME has increased home loan rates across the board by 0.10 to 0.15 percentage points.


Reduce Home Loans has made small increases in its variable rate home loans.


Which lenders are raising fixed home loan rates?


In the fixed rate mortgage market, 19 lenders increased rates in November 2016.

with most of the activity around three-year rates.

Greater Bank had the lowest rate in the four and five-year term market, at 3.74 per cent. Those rates have now been increased by between 0.11 and 0.35 percentage points.


ING Direct has increased fixed rates for all fixed home loan terms by between 0.10 and 0.40 percentage points.


St George Bank increased its two and three-year rates by 0.24 percentage points and its five-year rate by 0.54 percentage points. Investors rates went up an additional 0.06 percentage points.



Are any lenders cutting home loan rates?


Yes there is still a few lenders who are cutting home loan rates! In November 2016, Aussie Home Loans, BankVic, Illawarra Home Loans, and Qudos Bank all cut their home loan rates.


You can research and compare variable rate home loans from all of Australia’s major lenders here – Compare Variable Home Loans

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






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