Australia’s two biggest lenders recently made substantial changes to their rate offerings, in anticipation of a likely rate hike by the Reserve Bank of Australia (RBA).
ANZ lowered its variable rates under the Simplicity Plus loan offer for residential owners. However, it raised the rates under the same loan product for investors.
Meanwhile, Westpac recently introduced several hikes to its fixed rates for both investors and owner-occupiers.
Westpac has revised its February 2023 projection and is now expecting the central bank to make a move as early as August.
This updated projection outlines a 15-basis point hike, which would bring the cash rate target to 0.25%.
Westpac senior economist Justin Smirk said the recently released inflation data already exceeds the peak in the RBA's forecasts.
“Headline inflation came in stronger than expected at 1.3% exceeding the top of the range forecast at 1.2%; Westpac and the market were forecasting 1.1%,” he said.
Westpac economist Bill Evans said the direction at which inflation is going could signal a potential rate hike by the RBA.
“We expect that underlying inflation will reach 2.4% in 2021 and lift to 2.6% in March 2022 and 2.9% in June 2022,” he said.
“This will mean that by the time of the August meeting the Board will have observed three consecutive quarters in which annual underlying inflation has achieved or exceeded its target.”
Here are some of the most significant changes in rate offers by ANZ, Westpac, and other lenders over the past week.
ANZ
|
ANZ Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Investment Simplicity Plus IO <70% Special Offer |
+10bps |
3.09% p.a. |
3.29% p.a. |
|
Investment Simplicity Plus P&I <70% Special Offer |
+20bps |
2.99% p.a. |
3.03% p.a. |
|
Simplicity Plus P&I <80% Special Offer |
-10bps |
2.29% p.a. |
2.33% p.a. |
Westpac
|
Westpac Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Fixed Options P&I 5 yrs 95% |
+20bps |
3.89% p.a. |
4.44% p.a. |
|
Fixed Options P&I 5 yrs 70% |
+20bps |
3.79% p.a. |
4.34% p.a. |
|
Investment Fixed P&I 5 yrs 70% |
+15bps |
3.89% p.a. |
4.70% p.a. |
|
Investment Fixed P&I 5 yrs 70% |
+15bps |
3.89% p.a. |
4.70% p.a. |
BankSA
|
BankSA Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Residential Fixed P&I 5 yrs |
+20bps |
3.84% p.a. |
4.43% p.a. |
|
Residential Fixed P&I 3 yrs |
+15bps |
3.29% p.a. |
4.39% p.a. |
|
Advantage Package Residential Fixed P&I 5 yrs 150k+ |
+20bps |
3.69% p.a. |
3.84% p.a. |
|
Advantage Package Investment Fixed P&I 3 yrs 150k+ |
+10bps |
3.34% p.a. |
4.09% p.a. |
|
Advantage Package Investment Fixed P&I 5 yrs 150k+ |
+15bps |
3.79% p.a. |
4.21% p.a. |
St. George
|
St. George Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Residential Fixed P&I 3 yrs 60-80% |
+15bps |
3.24%p.a. |
4.35% p.a. |
|
Residential Fixed P&I 5 yrs 60-80% |
+20bps |
3.79% p.a. |
4.37% p.a. |
|
Investment Fixed P&I 3 yrs 60-80% |
+10bps |
3.44% p.a. |
4.80% p.a. |
|
Investment Fixed P&I 5 yrs 60-80% |
+15bps |
3.89% p.a. |
4.75% p.a. |
Bank of Melbourne
|
Bank of Melbourne Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Residential Fixed P&I 5 yrs <60% |
+20bps |
3.74%p.a. |
4.325% p.a. |
|
Residential Fixed P&I 3 yrs 60-80% |
+15bps |
3.24% p.a. |
4.33% p.a. |
|
Investment Fixed P&I 5 yrs 60-80% |
+15bps |
3.89% p.a. |
4.75% p.a. |
|
Investment Fixed P&I 5 yrs 95% |
+15bps |
3.94% p.a. |
4.80% p.a. |
Summerland Credit Union
|
Summerland Credit Union Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Standard Fixed 1 yr |
+30bps |
2.29% p.a. |
4.46% p.a. |
|
Standard Fixed 2 yr |
+20bps |
2.69% p.a. |
4.34% p.a. |
|
Standard Fixed 3 yr |
+30bps |
3.04% p.a. |
4.29% p.a. |
|
Investment Standard Fixed 3 yrs |
+30bps |
3.39% p.a. |
4.72% p.a. |
|
Offset Home Loan <80% 250k+ Special Offer |
-20bps |
2.29% p.a. |
2.47% p.a. |
bcu
|
bcu Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Investment Fixed IO 3 yrs |
+20bps |
2.84% p.a. |
3.86% p.a. |
|
Investment Fixed P&I 3 yrs |
+20bps |
2.79% p.a. |
3.85% p.a. |
|
Residential Fixed P&I 2 yrs |
+15bps |
2.19% p.a. |
3.73% p.a. |
|
Residential Fixed P&I 4 yrs |
+5bps |
2.94% p.a. |
3.69% p.a. |
IMB
|
IMB Loan Product |
Change |
New Advertised Rate |
Comparison Rate |
|
Residential Fixed P&I 3 yrs ≤80% |
+32bps |
2.59% p.a. |
2.74% p.a. |
|
Residential Fixed P&I 5 yrs ≤80% |
+30bps |
3.09% p.a. |
2.90% p.a. |
|
Investment Fixed P&I 3 yrs |
+20bps |
2.74% p.a. |
3.20% p.a. |
|
Investment Fixed P&I 5 yrs |
+20bps |
3.38% p.a. |
3.39% p.a. |
—
Photo by @precondo on Unsplash.
Collections: Mortgage News Interest Rates
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