Home loan honeymoon is over

Consumers looking to compare home loans are likely to lament the news that many major banks are hiking up the fees on their fixed-rate home loans.

In developments that may encourage buyers to lock in to a fixed-rate home loan deal now to avoid further rises, Commonwealth, Westpac and National Australia Bank have all announced plans to increase their home loan interest rates, with ANZ the only major bank lender holding firm.

A spokesperson for ANZ told the Advertiser that it has no intention of hiking the interest rates on its fixed-rate home loans.

Australia’s major banks are already being scolded for their failure to pass on the interest rate cut announced by the Reserve Bank last month, with many blaming the cost of borrowing on the open market.

The Reserve Bank enacted a 25 basis point reduction earlier this month, after deciding to hold off on an interest rate cut in March.