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Home loan lenders continued to roll out rate increases over the past week, ahead of another potential increase in the Reserve Bank of Australia (RBA)’s cash-rate target next week.
AMP head of investment strategy Shane Oliver said the cash rate could go up by 40 bps to 0.75% as unemployment fell to its lowest record since 1974.
“While March quarter wages growth was on the soft side, it was in line with RBA expectations and the tight labour market along with numerous business surveys and the RBA’s own business liaison point to an acceleration in wages growth ahead,” he said.
“As a result, and given RBA concerns that inflation psychology might rise, it is likely to step up the pace of tightening in June in order to get on top of inflation and so we expect a 0.4% hiking taking the cash rate to 0.75%.”
Here are some of the biggest rate movements by Australian lenders over the past week:
Westpac
Westpac continued to hike its fixed rates across its owner-occupier and investor offer under the Premier Advantage product. Some of the changes also apply to its subsidiaries. Below are some of the biggest changes in its fixed rates over the past week:
|
Westpac Loan Product |
Change |
New Rate |
|
Premier Advantage Fixed Options P&I 1 yr 95% 150k+ |
+80 bps |
3.69% p.a. (3.96% p.a. comparison rate) |
|
Premier Advantage Investment Fixed P&I 1 yr 70% |
+70 bps |
3.69% p.a. (4.36% p.a. comparison rate) |
|
Premier Advantage Fixed Options P&I 2 yrs 70% 150k+ |
+60 bps |
4.29% p.a. (4.00% p.a. comparison rate) |
|
Premier Advantage Fixed Options P&I 3 yrs 95% 150k+ |
+50 bps |
4.79% p.a. (4.27% p.a. comparison rate) |
NAB
Similar to Westpac, NAB continued to increase its fixed rates for owner-occupiers and investors, rolling out hikes of up to 90 bps.
|
NAB Loan Product |
Change |
New Rate |
|
Choice Package Inv Tailored Fixed - P&I 1 yr 150k+ |
+90 bps |
4.09% p.a. (5.09% p.a. comparison rate) |
|
Choice Package Tailored Fixed - IO 1 yr 150k+ |
+80 bps |
4.89% p.a. (4.77% p.a. comparison rate) |
|
Choice Package Inv Tailored Fixed - P&I 2 yrs 150k+ |
+65 bps |
4.84% p.a. (5.17% p.a. comparison rate) |
|
Tailored Fixed P&I 2 yrs |
+60 bps |
4.69% p.a. (4.89% p.a. comparison rate) |
Aussie
Aussie increased the rates of its full doc loans under the Activate Near-Prime, Activate Prime, and Activate Specialist loan products by up to 44 basis points. Here are some of the most notable changes:
|
Aussie Loan Product |
Change |
New Rate |
|
Activate Near-Prime Full Doc P&I 65-70% |
+44 bps |
3.84% p.a. (4.06% p.a. comparison rate) |
|
Activate Prime Full Doc P&I 75-80% |
+40 bps |
3.19% p.a. (3.22% p.a. comparison rate) |
|
Activate Specialist Full Doc P&I 75-80% |
+30 bps |
5.79% p.a. (5.99% p.a. comparison rate) |
Great Southern Bank
Great Southern Bank rolled out increases in both its fixed and variable rates. Its biggest increase was for its one-year fixed rates, which got a hike of more than 100 bps.
|
Great Southern Bank Loan Product |
Change |
New Rate |
|
Fixed IO 1 yr |
+125 bps |
5.34% p.a. (4.18% p.a. comparison rate) |
|
Fixed P&I 1 yr |
+125 bps |
4.84% p.a. (4.13% p.a. comparison rate) |
|
Investment Fixed P&I 1 yr |
+125 bps |
5.14% p.a. (4.55% p.a. comparison rate) |
|
Fixed P&I 2 yrs |
+85 bps |
4.99% p.a. (4.23% p.a. comparison rate) |
Greater Bank
Greater Bank made a minor adjustment to its discounted rate.
|
Greater Bank Loan Product |
Change |
New Rate |
|
Great Rate Discount Variable $150k+ ≤90% |
+10 bps |
2.29% p.a. (2.30% p.a. comparison rate) |
—
Photo by @hjwinunsplsh on Unsplash
Collections: Mortgage News Interest Rates
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