Big bank rate hikes hit today

By Roisin Kelly-Goldsmith ·

Owner occupier and investor home loan borrowers are affected today by interest rate hikes set by a number of banks in a bid to gain capital.

Westpac’s rate hike was the highest of the big four at 20 points, followed by ANZ at 18, and Commbank at the lower end of 15 points. Westpac’s Chief Executive George Franzis cited regulatory changes as the motivator for the rate increases. 

"This is a difficult decision and one that is not taken lightly," Franzis said. 

"We have sought to carefully balance the needs of our borrowers, depositors and our shareholders, as well as the competitive market we operate in. Increases in the cost of doing business inevitably influence business decisions, including price."

RELATED: How a rate rise could affect you

Regulations set by the Australian Prudential Regulation Authority (APRA) in July required banks to gain more capital per loans than previously to reduce credit risk. The banks argued that the regulations have compelled them to increase these interest rates. 

"Any decision to change interest rates is carefully considered," Matt Comyn, Group Executive for Retail Banking Services of CommBank said. 

"The cost of the new capital required to make the Australian banking system more secure needs to balance the interests of our customers.” 

Thirteen banks such as Adelaide and Bendigo Bank have also increased rates while big four bank NAB made the move earlier this month and increased rates on November 12.

Our data showed these rate hikes have resulted in a refinancing rush, with a 25% spike in switching in our home loan section last month.

Have you been stung by your provider lifting rates? Compare deals in our home loan comparison section or visit our refinance hub for helpful hints and tips for switching.

Home loan comparisons on Mozo - last updated January 23, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

    Compare
    Details
  • mozo-experts-choice-2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a. variable
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    Compare
    Details
  • mozo-experts-choice-2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Compare
    Details
  • Fixed Home Loan Special Offer

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    2.94% p.a.

    Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.

    Compare
    Details
placeholder

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

Get Started

^See information about the Mozo Experts Choice Home Loans Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.