Westpac, Macquarie amid tsunami of home loan rate hikers

More than 30 lenders increased their home loan rates this week, the vast majority passing on February's 25-basis point cash rate increase to their variable rates.

Westpac effected the hike on Thursday and Macquarie Bank on Friday, making them the last of the big bank lenders to lift their variable-rate home loans after the Reserve Bank's cash rate call on 3 February.

Westpac's best advertised variable rate is now a discounted 5.49% p.a. (5.50% p.a. comparison rate* ) for its Flexi First Option basic home loan - taken out online - for borrowers with loan-to-value ratios (LVRs) up to 70%.

Westpac hikes mortgage interest rates

Here's a look at some of Westpac's variable rates for owner occupiers making principal and interest (P&I) repayments after the 0.25% hike:

Product	LVR	New rate	Comparison rate*
Flexi First Option	≤70%	5.94% p.a. 5.49% p.a. (online rate)	5.95% p.a. 5.50% p.a.
	70-80%	6.04% p.a. 5.59% p.a. (online rate)	6.05% p.a. 5.60% p.a.
	>80%	6.34% p.a.	6.35% p.a.
Rocket Repay	≤70%	8.23% p.a. 5.89% p.a. (with package^)	8.36% p.a. 6.27% p.a.
	70-80%	8.33% p.a. 5.99% p.a. (with package)	8.46% p.a. 6.36% p.a.
	>80%	8.65% p.a. 6.29% p.a. (with package)	8.76% p.a. 6.66% p.a.

Westpac's new investor rates

And here are new investor rates for both P&I and IO repayments:

Product	LVR	New rate P&I	Comparison rate*	New rate IO	Comparison rate*
Flexi First Option	≤70%	6.24% p.a. 5.64% p.a. (online rate)	6.25% p.a. 5.65% p.a.	6.74% p.a. 5.89% p.a. (online offer)	6.67% p.a. 5.73% p.a.
	70-80%	6.34% p.a. 5.74% p.a. (online rate)	6.35% p.a. 5.75% p.a.	6.84% p.a. 5.99% p.a. (online offer)	6.77% p.a. 5.83% p.a.
	>80%	6.64% p.a.	6.64% p.a.	7.14% p.a.	7.07% p.a.
Rocket Repay	≤70%	8.78% p.a. 6.09% p.a. (with package^)	8.91% p.a. 6.46% p.a.	9.04% p.a. 9.35% p.a.(with package)	9.09% p.a. 6.59% p.a.
	70-80%	8.88% p.a. 6.19% p.a. (with package)	9.01% p.a. 6.56% p.a.	9.14% p.a. 6.45% p.a.(with package)	9.19% p.a. 6.69% p.a.
	>80%	9.18% p.a. 6.49% p.a. (with package)	9.31% p.a. 6.86% p.a.	9.44% p.a. 6.75% p.a. (with package)	9.49% p.a. 6.99% p.a.

^ Westpac's Premier Advantage Package offers interest rate discount and savings on other products for $395 annual package fee.

Macquarie's RBA rate hike kicks in

Macquarie Bank makes a point of being slower to pass on its home loan rate increases than its big bank counterparts.

Its best new variable rate is 5.59% p.a. (5.61% p.a. comparison rate*) for a basic owner occupier home loan for borrowers with LVRs 70% or less. 

Here's a look at Macquarie Bank's new variable interest rate schedule after the 0.25% increase for owner occupiers making P&I repayments:

LVR	Interest rate (basic)	Comparison rate*	Interest rate (with offset)	Comparison rate*
≤ 60%	5.59% p.a.	5.61% p.a.	5.59% p.a.	5.84% p.a.
≤ 70%	5.59% p.a.	6.61% p.a.	5.59% p.a.	5.84% p.a.
≤ 80%	5.64% p.a.	5.66% p.a.	5.64% p.a.	5.89% p.a.
≤ 90%	5.84% p.a.	5.86% p.a.	5.84% p.a.	6.09% p.a.
≤ 95%	6.64% p.a.	6.67% p.a.	6.64% p.a.	6.89% p.a.

Macquarie's new investor rates

The rates below are for investors making P&I repayments:

LVR	Interest rate (basic)	Comparison rate*	Interest rate (with offset)	Comparison rate*
≤ 60%	5.69% p.a.	5.71% p.a.	5.69% p.a.	5.94% p.a.
≤ 70%	5.74% p.a.	5.76% p.a.	5.74% p.a.	5.99% p.a.
≤ 80%	5.79% p.a.	5.81% p.a.	5.79% p.a.	6.04% p.a.
≤ 90%	6.65% p.a.	6.68% p.a.	6.65% p.a.	6.90% p.a.

And here are Macquarie's interest-only (IO) variable rates for investors:

LVR	Interest rate (basic)	Comparison rate*	Interest rate (with offset)	Comparison rate*
≤ 60%	5.90% p.a.	5.92% p.a.	5.90% p.a.	6.15% p.a.
≤ 70%	5.94% p.a.	5.96% p.a.	5.94% p.a.	6.19% p.a.
≤ 80%	6.04% p.a.	6.06% p.a.	6.04% p.a.	6.29% p.a.

Other lenders lifting variable rates by 0.25% this week

Here's a snapshot of other lenders passing on the 25-basis point cash rate increase to their variable rates this week. (New rates are available via the links below).

• St George Bank
• HSBC
• Regional Australia Bank
• Heritage Bank/ IMB Bank
• Bank of Sydney
• RACQ Bank
• BankVic
• Auswide Bank
• MyState Bank
• Gateway Bank
• Beyond Bank
• IMB Bank
• Arab Bank Australia
• Mortgage House
• Hume Bank
• P&N Bank
• BCU Bank
• Bank of China
• Bank Australia
• Qudos Bank
• Queensland Country Bank  
• Teachers Mutual Bank group (including Firefighters Mutual, Health Professionals Bank, and UniBank)
• Bank of Us
• Bank First

AMP Bank makes further increases

AMP Bank passed on the 25-basis point cash rate hike to its variable rate home loans on 9 February and this week made further rate increases to some of its Professional Package products.

Most rates were adjusted by five basis points, although Professional Package Investor loans for 90% LVRs saw a 20-basis point increase, taking their rates above the 6% benchmark.

Professional Package Line of Credit products for investors also saw a five-basis point rate increase.

Other rate increases

While some of the lenders below were among those to pass on the 25-basis point cash rate increase this week, they also made other rate adjustments, as follows:

• Australian Mutual Bank will be raising its variable home loan rates from 1 March but on Thursday, it increased its fixed rate owner occupier, investor, and its first home buyer two-year fixed Special Offer by 25 basis points.
• As well as passing on the 25-basis point hike to variable home loan rates on Tuesday, the Teachers Mutual group also lifted its Your Way fixed home loans rates by 40 basis points.
• Tasmanian-based Bank of Us passed on the 25-basis point lift to its variable rate home loans on Thursday, also increasing a raft of other fixed home loan products by between 10 to 45 basis points.
• Horizon Bank has lifted its fixed home loan rates for owner occupiers and investors by up to 30 basis points, after upping its variable rates by 25 basis points earlier this month.

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