As of 21 December, market expectations were that there is a 95% chance the RBA will keep rates steady at 4.35% when it next convenes in February.

Some analysts, including NAB economist Tapas Strickland, are warning mortgage holders another rate hike remains a real possibility, but this will depend on the data, in particular the all important December quarter CPI print.

Until the ABS releases that information near the end of January, there will likely be less rate movement among home loan products.

That said however, InfoChoice database research found home loan rate changes thus far in December were not insubstantial, despite no movement from the RBA.

The average variable rate increase was between 0.14% and 0.16%, while several fixed rates were also boosted.

In the week past, the most notable moves were down, with both Bendigo and MyState bank cutting fixed rates.

Not every bank was spreading Christmas cheer though, with AusWide bank hiking variable rates.

The following rate wrap pertains to new customers only.

Bendigo cuts fixed rates up to 55 bps

There were widespread cuts across Bendigo's range of fixed rate home loan products this week.

For Owner Occupiers, the Complete Home Loan (LVR<95%) saw rates slashed:

Fixed term Decrease New rate
One year 25 bps 6.29% p.a (6.47% p.a comparison rate*)
Two years 40 bps 5.99% p.a (6.41% p.a comparison rate*)
Three years 35 bps 6.04% p.a (6.41% p.a comparison rate*)
Four years 45 bps 6.04% p.a (6.39% p.a comparison rate*)
Five years 55 bps 6.04% p.a (6.38% p.a comparison rate*)

Investors weren't left out, with the following changes to the Investor Complete Home Loan:

Fixed term Decrease New rate
One year 20 bps 6.64% p.a (6.77% p.a comparison rate*)
Two years 35 bps 6.34% p.a (6.72% p.a comparison rate*)
Three years 30 bps 6.39% p.a (6.72% p.a comparison rate*)
Four years 40 bps 6.39% p.a (6.71% p.a comparison rate*)
Five years 50 bps 6.39% p.a (6.69% p.a comparison rate*)

MyState cuts fixed rates up to 40 bps

Tasmanian-based MyState was another to slash fixed rates this week.

Changes for owner occupiers included:

  • The Residential two year fixed (LVR<80%) had rates decreased by 40 bps to 5.99% p.a. (7.97% p.a. comparison rate*)
  • For three year fixed terms, rates dropped by 35 bps to 6.04% p.a (7.77% p.a comparison rate*)

Meanwhile for investors:

  • Two year fixed (LVR<80%) saw a 25 bps decrease to 6.39% p.a. (8.06% p.a. comparison rate*)
  • Three year fixed terms saw rates dropped to 6.39% p.a. (7.87% p.a. comparison rate*), a 15 bps cut.

Auswide Bank ups variable rates

One group of Aussies who might not be feeling the festive cheer so keenly are customers at Auswide bank, after an increase to variable rates.

New rates include:

  • Basic owner occupier home loan (LVR<80%) had rates upped by 10 bps to 5.99% p.a (6.01% p.a comparison rate*).
  • Basic investment loan (LVR<80%) also had rates upped by 10 bps to 6.44% p.a (6.46% p.a comparison rate*).


Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
5.99% p.a.
5.90% p.a.
Principal & Interest
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.04% p.a.
6.06% p.a.
Principal & Interest
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
7.75% p.a.
6.31% p.a.
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

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