All big 4 banks hike home loan rates - is now a good time to refinance?

Monika Gudova

12 Nov 2018

People couple refinance mortgage content

With last man standing NAB succumbing to funding pressures and announcing a home loan rate rise for new customers, Aussie mortgage holders are wondering one thing: can I save by switching home loans?

Since June, we’ve seen variable home loan rate rises across the board, affecting not only big four customers, but those with second-tier lenders, too.

Westpac, ANZ and Commbank customers, were hit with variable rate hikes of between 14 and 16 basis points.

“The reason cited for these hikes, according to the banks, is an increase in funding cost pressures, which then have a ripple effect on interest rates,” said Mozo Data Manager Peter Marshall.

Last week, NAB joined the troup, hiking its Base Variable Rate Home Loan rate by 18 basis points, but only for new customers.

“Whilst a rate hike is never good news for consumers, NAB’s actions shouldn’t be compared to the rest of the big four, who applied rate hikes across all of their variable home loan products.”

And it’s not just the big four that have made rate hikes, 14 second-tier lenders have increased their variable rates since Westpac made their announcement.

“Whilst it’s looking unlikely there will be any further rate rises in the near future, especially after another month of the RBA keeping the official cash rate steady, you should be evaluating the damage already done - specifically how it affects your mortgage repayments,” said Marshall.

“There’s no reason you should be paying more for your mortgage, so if you’ve been affected by
the recent rate rises, now could be a great time to make the switch.”

How much can I save by refinancing

If you’ve seen your home loan rate go up in the last few months and need to know what that means for your wallet, we’ve got you covered. We’ve taken our home loan repayments calculator for a spin to help you understand these changes, and see how much you can save by switching home loans.

If you were borrowing $400,000 and paying principal and interest over 30 years on the current average loan rate in Mozo’s database of 4.37%, your monthly repayments would have come to $1,994.

But, if your lender hiked your rate by 15 basis points, you’d pay an extra $37 a month or $444 a year.

However, if you were to refinance your home loan for the lowest rate in our database, Reduce Home Loans Rate Lovers Variable rate of 3.44%, you’d only pay $1,783, saving you $2,976 that year.

If your home loan rate just went up and you’re thinking of refinancing, check out some of the great offers below, or head over to our home loan comparison tool to find a deal that works for you.

Refinance home loans

Rates updated daily. Advertiser disclosure.

  • loans.com.au

    3.69% p.a.

    3.70% p.a.

    $1234

    Product details Close details
    Refinance SMSF Home Loan

    3.69% p.a.

    3.70% p.a.

    Competitive low rate Self-Managed Super Fund Home Loan. Available to refinancing SMSF Home Loan customers only. No application or ongoing fees. Unlimited extra repayments.

    Refinance SMSF Home Loan

    Competitive low rate Self-Managed Super Fund Home Loan. Available to refinancing SMSF Home Loan customers only. No application or ongoing fees. Unlimited extra repayments.

    • $0.00

    • $0.00

    • yes - free

    • no

    • no

    • $220

    • 3.69% p.a.

    • 3.70% p.a.

    • $220

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Investor

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Refinance SMSF Home Loan

    Details Close

  • UBank
    Mozo Expert Choice Badge" style="width:60px;">

    2.19% p.a.

    2.19% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    2.19% p.a.

    2.19% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    UHomeLoan - Discount Offer

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.19% p.a.

    • 2.19% p.a.

    • $0

    • 80.00%

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

    Details Close

  • Athena
    Mozo Expert Choice Badge" style="width:60px;">

    1.99% p.a.

    1.99% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    1.99% p.a.

    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Celebrate Variable Home Loan

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 1.99% p.a.

    • 1.99% p.a.

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Celebrate Variable Home Loan

    Details Close

  • Macquarie

    2.14% p.a.

    2.14% p.a.

    $1234

    Product details Close details
    Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    2.14% p.a.

    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    Basic Home Loan

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    • $0.00

    • $400.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.14% p.a.

    • 2.14% p.a.

    • $0

    • 60.00%

    • $150,000

    • $5,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Monthly

    Read our Mozo Review to learn more about the Basic Home Loan

    Details Close

  • Nano

    1.99% p.a.

    1.99% p.a.

    $1234

    Product details Close details
    Variable Home Loan

    Owner Occupier, Principal & Interest

    1.99% p.a.

    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

    Variable Home Loan

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • yes - offset sub account

    • $0

    • 1.99% p.a.

    • 1.99% p.a.

    • $0

    • 75.00%

    • $100,000

    • $2,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Monthly

    Read our Mozo Review to learn more about the Variable Home Loan

    Details Close

^See information about the Mozo Experts Choice Home loans Awards

Mozo’s top refinancing tips

If one thing’s for sure, it’s that there’s savings to be had from shopping around for a lower home loan rate. So if you’re looking to refinance, keeps these tips in mind so you can reap the rewards:

● Do your research. A low rate isn’t the be-all-end-all when looking for a new loan. Keep in mind that handy features like an offset account and free extra repayment facility could serve you well in the long run.
● Weigh up the pros and cons. Refinancing isn’t free, and comes with costs such as discharge fees and upfront charges, so figure out whether the savings from refinancing your loan outweigh these costs.
● Consider a fixed rate. If you’re sick and tired of your lender constantly changing your rate, consider a fixed rate that can’t change for a number of years. Just remember that if market rates do eventually go down, your fixed rate won’t benefit from any rate cuts.
● Use a refinance calculator. One of the easiest ways to see what you could gain by refinancing your home loan is by putting your information through our switch and save calculator. Enter in your current loan and property details and press ‘get results’ to find a
list of loans that could save you big bucks.