Most economists are now expecting Michele Bullock and the RBA to raise the cash rate by 25 basis points on Melbourne Cup day next week.

In the lead up to the decision, there has already been a flurry of activity in the mortgage market, with several lenders hiking home loan rates in anticipation.

If you're an anxious mortgage holder concerned about forthcoming rate increases, it's even more important to be aware of your refinancing options, and keep on the look out for a better deal elsewhere.

ANZ hikes fixed rates up to 35 basis points

After the CPI inflation data came out last week, ANZ's head of Australian economics was one of the first commentators to adjust his prediction for November's RBA decision, declaring the likeliest outcome is a 25 basis point increase.

With that likely in mind, Australia's fourth biggest bank was the biggest of several lenders to up fixed rates this week.

For owner occupiers, these were some of the most notable products with rate increases:

  • Residential three year fixed home loans <80% LVR: A 30 basis point increase to 6.59% p.a (6.88% p.a comparison rate)
  • Residential one year fixed home loans <90% LVR: A 35 basis point increase to 6.74% p.a (7.18% p.a comparison rate).

And for investors:

  • Investment two year fixed home loan <80% LVR: A 30 basis point increase to 6.69% p.a (7.41% p.a comparison rate).
  • Investment four year fixed home loan <90% LVR: A 25 basis point increase to 6.99% p.a (7.49% p.a comparison rate).

ING hikes fixed and variable rates by up to 40 basis points

These were some of the most prominent ING products that saw rate increases for new owner occupied borrowers:

  • Residential fixed 3 year term, LVR <80%: 30 basis point increase to 6.39% p.a (6.06% p.a comparison rate)
  • Orange Advantage fixed 3 year term, LVR <90%: 30 basis point increase to 6.39% p.a (6.27% p.a comparison rate)
  • Mortgage Simplifier P&I variable, LVR <80%: 5 basis point increase to 5.89% p.a (6.18% p.a comparison rate)
  • Orange advantage variable, LVR <90%: 5 basis point increase to 6.19% p.a (6.48% p.a comparison rate)

Those looking to borrow an investment home loan from ING will also have to contend with rises, including the following:

  • Residential fixed 3 year term, LVR <80%: 30 basis point increase to 6.39% p.a (6.06% p.a comparison rate)
  • Orange Advantage fixed 3 year term, LVR <90%: 30 basis point increase to 6.39% p.a (6.27% p.a comparison rate)
  • Investment Mortgage Simplifier P&I, LVR <80%: A 5 basis point increase to 6.09% p.a (6.38% p.a comparison rate)

Macquarie hikes fixed rates up to 36 basis points

Macquarie made large rate increases this week to both term deposit and home loan rates, clearly anticipating a rate hike and a prolonged period before any cuts.

These were some of the prominent Macquarie products that saw rate hikes:

  • Basic owner occupied, two years fixed , LVR <80%: 20 basis point increase to 6.65% p.a (6.11% p.a comparison rate)
  • Offset owner occupied, three years fixed, LVR <90%: 26 basis point increase to 6.65% p.a (6.40% p.a comparison rate).
  • Basic investor, one year fixed, LVR <80%: 20 basis point increase to 6.79% p.a (6.28% p.a comparison rate)

AMP varies variable rates up to 30 basis points

AMP Chief Economist Shane Oliver is another who felt the stronger than expected inflation figures would likely prompt a rate hike next Tuesday.

Accordingly, AMP was one of the other majors that moved this week, altering rates in both directions by up to 30 basis points, including the following products:

  • Essential Home Loan $250-750k, LVR <80%: 15 basis point increase to 6.39% p.a (6.42% p.a comparison rate)
  • Professional Package Investment Variable P&I $500k-1m , LVR <90%: 25 basis point decrease to 6.41% p.a (6.76% p.a comparison rate)

Other movers

  • Bendigo cut rates on its Complete variable home loan by 10 basis points to 5.99% p.a (6.21% p.a comparison rate)
  • MyState increased fixed rates by up to 35 basis points
  • Adelaide Bank cut variable rates up to 15 basis points
  • Aussie cut variable rates up to 19 basis points
  • Bank of Sydney increased variable rates up to 5 basis points
  • RACQ increased fixed and variable rates by up to 25 basis points
  • Credit Union SA increased fixed and variable rates by up to 30 basis points
  • ME cut its member package variable rates by 14 basis points
  • Aus Unity cut variable rates up to 6 basis points


VariableMore details
APPLY IN MINUTES
  • 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.
APPLY IN MINUTES

Unloan – Variable Rate Home Loan LVR < 80%

  • 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.
VariableMore details
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee

loans.com.au – Variable Home Loan (LVR < 90%)

  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
FixedMore details

loans.com.au – Bridging Loan Fixed (6 months)

    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 July 20, 2024.View disclaimer