Bendigo Bank and Teachers Mutual Bank have joined the growing number of lenders increasing their home loan rates. Most increases are around 10 basis points but some are higher.
Bendigo has increased the rate on owner-occupier principal and interest loans by 10 basis points, all investment loans by 10 bps, line of credit finance by 10 bps and owner-occupier interest-only loans by 16 bps. The advertised price for a variable packaged rate is 4.33 per cent.
Bendigo Bank managing director Marnie Baker says: “Funding costs have been steadily increasing this year and we’ve absorbed this cost impact to date.”
Teachers Mutual Bank increased a number of owner-occupier P&I fixed rates: the one-year rate has gone up by eight bps to 3.87 per cent, the two-year rate has gone up by nine bps to 3.78 per cent; and the three-year rate has gone up by nine basis points to 3.88 per cent.
Last month, Auswide, Citibank, ING, Bank of Queensland, AMP Bank, Beyond Bank, QBank, Heritage, IMB, Macquarie and Pepper put up rates.
According to comparison site mozo.com.au, Auswide Bank increased its owner-occupier variable rates by five basis points and its investor variable rates by 13 basis points.
Citibank and ING have increased variable rates by 10 bps. Beyond Bank and QBank added six bps to their variable rates. Heritage Bank raised rates on all loan types by five bps.
Bank of Queensland put up the rate on owner-occupier principal and interest loans by nine bps and put up the rate on all other loans by 15 bps.
AMP Bank has increased owner-occupier interest-only rates for new customers by 40 bps.
IMB took the unusual step of withdrawing its package loans from the market. It also added eight bps to owner-occupier and investor variable rates.
These changes follow mortgage rate increases by Suncorp, ME and MyState since March.
Rates on fixed interest loans also rose, with Westpac and its subsidiaries increasing some rates by up to 15 bps.
The lowest variable rate loan in the market is 3.39 per cent, which BIDeloan is offering on its SMARTeloan product.
The rate leaders in the fixed rate segment are Greater Bank, which is offering 3.49 per cent for one year; IMB Bank, offering 3.65 per cent for two years; Community First and easy Street – 3.69 per cent for three years; Freedom Lend and ING, with 3.92 per cent for four years; and ING, offering 3.98 per cent for five years.
Among the big banks, ANZ’s best package variable rate is 4.3 per cent, while it is offering 3.99 per cent on a three-year fixed rate package.
Commonwealth Bank is offering 4.52 per cent for a package variable rate mortgage and 3.99 per cent for three years fixed.
National Australia bank is offering 4.34 per cent for a package variable rate and 3.94 per cent for three years.
Westpac is offering 4.34 per cent for a package variable rate and 3.99 per cent for three years.
Rate City has estimated that as many as 362,800 home loan customers will have to make higher repayments from this month.
It says most of the increases have been in the variable rate segment, raising the prospect of a switch to fixed rates.
Canstar group executive of financial services, Steve Mickenberger, says borrowers should be looking at fixed rate offering because some lenders have cut their fixed rates.
