Which banks have increased interest rates on home loans?

Last updated: 2:45 p.m. July 8

The Reserve Bank announced another official rate hike – this time by 0.50 basis points to 1.35%.

This is the third hike of the year and many economists are speculating that we will see more rate hikes into 2022. In fact, Westpac economists are predicting rates will rise by as much as 1.75% by the end of the year.

In the past two months, lenders have increased interest rates on adjustable-rate home loans, fixed-rate home loans, and savings accounts. In anticipation of today’s announcement, the big four have already raised their fixed rates by more than 100 basis points in some cases.

According to our database, all fixed prices below a “2” are now gone, and it’s likely those that still start with a “3” will also dwindle in the coming months.

Which lenders have reduced interest rates on home loans?

As before, the reaction times of banks and lenders to the announcement of the new interest rates will vary. To help you stay on top of any significant changes, we will periodically update this page with the size of the rate hikes and when they will take effect.

Below is a snapshot of the average home equity interest rate for owner occupiers^ in our database as of July 5, 2022 to use as a point of reference. Keep in mind that these will likely continue to rise over the coming week:

loan type Average
variable 3.65% pa
1 year fixed 4.22% pa
2 years fixed 4.87% pa
3 years fixed 5.26% pa
4 years fixed 5.69% pa
5 years fixed 5.75% pa

virgin money

  • Effective July 9th Virgin Money will increase its variable rates on home loans by 0.50% pa
  • Effective July 15 Also, it will increase its Boost Saver account to 2.30% pa and its Grow Saver account to 1.50% pa

kredite.com.au

  • Valid from July 8thLoans.com.au will increase its home and car loans by 0.50% pa

Thinking about taking out a home loan? Visit our home loan comparison page for more information. Or check out our home loan interest rate calculator to see how the new rate hike could affect your repayments.

*
WARNING: This rate of comparison applies only to the example or examples provided. Different amounts and maturities lead to different comparison rates. Costs such as withdrawal fees or prepayment penalties and cost savings such as fee waivers are not included in the settlement rate, but may affect borrowing costs. The comparative interest rate shown is for a secured loan with monthly principal and interest payments of $150,000 over 25 years.

**
The initial monthly repayment numbers are estimates only, based on the advertised interest rate, loan amount, and entered term. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on the loan amount, loan term and credit history. Actual repayments will depend on your individual circumstances and changes in interest rates.

^See information on the Mozo Experts Choice Home Loan Awards

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