To wrap the week, it was a quiet one as banks gear up for end-of-month and dealt with mixed messaging on RBA cash rate increases, despite persistent and surprisingly high inflation numbers.
Still some prominent banks, as well as some well-known mutuals, made moves this week.
Keep in mind these are for new borrowers only - existing customers are likely unaffected.
NAB increases variable rates by 0.10%
NAB increased basic variable rates paying principal & interest by 10 basis points.
- Owner Occupiers: Now 6.59% p.a. (6.63% p.a. comparison rate*)
- Investors: Now 7.11% p.a. (7.15% p.a. comparison rate*)
This is a no-frills home loan product where customers can borrow up to 95% of the value of the home (LVR).
“We continue to make changes to our home loan pricing for new customers that reflect the changing cost of funds. These changes don’t affect existing customers and there’ll be no change to their current rates," a NAB spokesperson told InfoChoice.
AMP varies fixed-rate loans by up to 0.40%
AMP changed rates both up and down on a variety of fixed-rate 'Professional Package' home loan products.
For example the two-year fixed rate with 80% LVR for owner occupiers was increased by 35bps to 6.59% p.a. (6.85% p.a. comparison rate*).
The product that saw the biggest change was the 5-year fixed packaged loan for investors paying P&I on 90% LVR, which went up by 40bps to 7.14% p.a. (7.21% p.a. comparison rate*).
Teachers Mutual increases variable rates by 0.25%
The sixth-largest customer-owned bank by assets made a series of increases on key variable-rate products, all by 25bps.
- Your Way Basic IO 80%: Now 6.29% p.a. (6.12% p.a. comparison rate*)
- Your Way Basic P&I 80%: Now 5.89% p.a. (5.95% p.a. comparison rate*)
- Inv Your Way Basic IO 80%: Now 6.59% p.a. (6.42% p.a. comparison rate*)
- Inv Your Way Basic P&I: Now 6.19% p.a. (6.25% p.a comparison rate*)
Similar increases were applied to the bank's subsidiaries including UniBank, Firefighters Mutual Bank, and Health Professionals Bank.
Bank Australia increases fixed rates by up to 0.35%
The fourth-largest customer-owned bank in terms of assets increased a large swathe of fixed-rate home loans by up to 35bps. A couple of noteworthy product movements included:
- Basic Fixed 3 Years P&I 80%: 15 basis point increase to 5.89% p.a. (5.83% p.a. comparison rate*)
- Inv Basic Fixed 3 Years P&I 80%: 25 basis point increase to 5.99% p.a. (6.00% p.a. comparison rate*)
The product that saw the largest increase was a series of investment 5-year fixed rates. For example, the 5-year fixed 80% LVR product for investors is now 5.99% p.a. (
Notably the rates on a variety of different fixed tenures appear to be converging.
A variety of other types of home loan rates were also increased, including packaged loans, and notably a couple of 3-year fixed green home loans were increased by 15bps.
- Bank of Us varies variable rates by up to 50 basis points
- Auswide Bank decreases fixed rates by 60 basis points
Photo via NAB website