Bendigo Bank & peers shake up home loan rates

Multiple home loan lenders changed the rates advertised to new borrowers or refinancers this week.

And that was fortunate, as there was otherwise very little market news to share this week.

Perhaps the most impactful announcement regarding the broader economy and home loan market came from federal treasurer Jim Chalmers.

Dr Chalmers announced two appointments to the Reserve Bank of Australia's (RBA) upcoming cash rate board.

The central bank's board will be split in two early next year, with one board charged with setting the cash rate and another overseeing the RBA's other functions.

The new monetary policy board will house nine members: governor Michele Bullock, deputy chair Andrew Hauser, secretary to the treasurer Stephen Kennedy, four existing board members, and two new additions.

Those additions were this week revealed to be economics professor Renée Fry-McKibbin and former Bendigo Bank CEO Marnie Baker.

Speaking of Bendigo Bank, it was the most notable mover this week, shaking up home loan interest rates by as much as 25 basis points.

Bendigo Bank adjusts interest rates

Bendigo Bank hiked fixed rates for owner-occupiers and variable rates for investors this week.

But it wasn't all bad news from the bank's camp, with fixed rates for investors slashed.

Changes for owner-occupiers making principal and interest repayments (P&I) include:

Product	Change	New rate	Comparison rate*
Express Fixed one year	+20bp	6.04%	6.21%
Express Fixed two years	+20bp	5.74%	6.15%
Complete Home Loan Fixed one year	+20bp	6.04%	6.44%
Complete Home Loan Fixed two years	+20bp	5.74%	6.36%

Investors, meanwhile, saw the advertised variable interest rate on Bendigo Bank's Complete Home Loan increase.

It rose 15 basis points to 6.49% p.a. for borrowers with loan-to-value ratios (LVRs) of 80% or less (6.71% p.a. comparison rate*).

Those with LVRs of 80% to 90% saw rates bumped 10 basis points to 6.64% p.a. (6.86% p.a. comparison rate*).

In better news, however, fixed rates for investors received a haircut, with changes for those making P&I repayments including:

Product	Change	New rate	Comparison rate*
Investment Express Fixed one year	-25bp	6.39%	6.43%
Investment Express Fixed two years	-25bp	6.09%	6.38%
Investment Complete Home Loan Fixed one year	-25bp	6.39%	6.70%
Investment Complete Home Loan Fixed two years	-25bp	6.09%	6.63%

Adelaide Bank shakes up fixed rates by up to 45bp

Joining in on the interest rate action this week was Bendigo Bank stablemate Adelaide Bank. The two banks merged in 2007.

Owner-occupiers saw the bank's one and two year fixed rates hiked, with new rates as follows:

Product	Change	New rate	Comparison rate*
SmartSaver Fixed one year	+15bp	6.09%	6.23%
SmartSaver Fixed two years	+20bp	5.84%	6.17%

Like those from Bendigo Bank, the changes made by Adelaide Bank were largely geared towards investment home loans.

Investors making P&I repayments could take advantage of these drops:

Product	Change	New rate	Comparison rate*
Investment SmartSaver Fixed one year	-20bp	6.29%	6.46%
Investment SmartSaver Fixed two years	-45bp	6.04%	6.39%
Investment SmartSaver Fixed three years	-15bp	6.34%	6.44%
Investment SmartSaver Fixed four years	-25bp	6.34%	6.44%
Investment SmartSaver Fixed five years	-25bp	6.34%	6.43%

Tiimely Home shakes up home loan rates by up to 20bp

Finally, Bendigo Bank-backed Tiimely Home made changes to its fixed rate line up.

Like Bendigo Bank and Adelaide Bank before it, the non-bank lender lifted rates advertised for owner-occupiers fixing their rate for one or two years by 15 to 20 basis points.

Purchasers and refinancers can now fix their rate at 5.99% p.a. for one year or 5.74% p.a. for two years (comparison rates* 6.04% p.a. and 5.99% p.a. respectively).

Meanwhile, the gap between many of the lender's owner-occupier and investor fixed rates was further narrowed by cuts to the latter.

Investors making P&I repayments can now lock in a rate of 6.19% p.a. for one year, representing a 5 basis point cut (6.28% p.a. comparison rate*).

Those considering fixing for two years can do so at a rate of 5.94% p.a. - a 20 basis point cut (6.23% p.a. comparison rate*).

Other movers

• Auswide Bank hiked many of its Freedom Package fixed rates by up to 20 basis points

• The Mutual Bank increased fixed rates across much of its Package and Standard home loans by up to 20 basis points

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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

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