Which home loan lenders have raised interest rates?
You might have assumed you were safe against a home loan rate rise until the Reserve Bank of Australia lifts rates, but times are changing with APRA requiring major home loan lenders to increase their capital by July 1 next year.
And where will they find this extra capital? Your hip pocket, of course.
Westpac was the first bank to lift its variable rates last month. And as expected the other majors - CommBank, ANZ and NAB - followed suit lifting their rates for both investors and owner occupiers.
Since the major banks announced last month they will increase their variable rates, more rate hikes have followed from Australia's other lenders including St.George, Macquarie Bank, Bendigo Bank, Adelaide Bank, AMP, Bankwest, Big Sky, Citibank, ME, Suncorp, CUA and Bank of Queensland.
<<Update>> ING Direct has announced it will increase interest rates by 18 basis points.
So how much will these rate rises cost you? Scan the tables below which use three mortgage scenarios - $300k, $500k and $750k - to see the dollar difference each month and over a 25 year period.
Scenario 1 - $300,000 home loan over 25 years
| Current standard variable rate | Current monthly repayments | New standard variable rate | New monthly repayments | Monthly difference | 25 year difference | |
|---|---|---|---|---|---|---|
| Westpac | 5.48% | $1,839 | 5.68% | $1,875 | $36 | $10,791 |
| CBA | 5.40% | $1,824 | 5.60% | $1,860 | $36 | $10,749 |
| ANZ | 5.38% | $1,821 | 5.56% | $1,853 | $32 | $9,660 |
| NAB | 5.43% | $1,830 | 5.60% | $1,860 | $30 | $9,143 |
| St.George | 5.54% | $1,849 | 5.69% | $1,876 | $27 | $8,106 |
| Macquarie | 5.50% | $1,842 | 5.70% | $1,878 | $36 | $10,801 |
| Bendigo Bank | 5.56% | $1,853 | 5.68% | $1,875 | $22 | $6,487 |
Scenario 2 - $500,000 home loan over 25 years
| Current standard variable rate | Current monthly repayments | New standard variable rate | New monthly repayments | Monthly difference | 25 year difference | |
|---|---|---|---|---|---|---|
| Westpac | 5.48% | $3,064 | 5.68% | $3,124 | $60 | $17,984 |
| CBA | 5.40% | $3,041 | 5.60% | $3,100 | $59 | $17,916 |
| ANZ | 5.38% | $3,035 | 5.56% | $3,088 | $53 | $16,101 |
| NAB | 5.43% | $3,050 | 5.60% | $3,100 | $50 | $15,240 |
| St.George | 5.54% | $3,082 | 5.69% | $3,127 | $45 | $13,511 |
| Macquarie | 5.50% | $3,070 | 5.70% | $3,130 | $60 | $18,002 |
| Bendigo Bank | 5.56% | $3,088 | 5.68% | $3,124 | $36 | $10,811 |
Scenario 3 - $750,000 home loan over 25 years
| Current standard variable rate | Current monthly repayments | New standard variable rate | New monthly repayments | Monthly difference | 25 year difference | |
|---|---|---|---|---|---|---|
| Westpac | 5.48% | $4,597 | 5.68% | $4,687 | $90 | $26,976 |
| CBA | 5.40% | $4,561 | 5.60% | $4,651 | $90 | $26,874 |
| ANZ | 5.38% | $4,552 | 5.56% | $4,633 | $81 | $24,152 |
| NAB | 5.43% | $4,574 | 5.60% | $4,651 | $77 | $22,859 |
| St.George | 5.54% | $4,624 | 5.69% | $4,691 | $67 | $20,266 |
| Macquarie | 5.50% | $4,606 | 5.70% | $4,696 | $90 | $27,002 |
| Bendigo Bank | 5.56% | $4,633 | 5.68% | $4,687 | $54 | $16,216 |
How to beat the big bank rate rise
There is one action which could save you a bundle in cash each month and a small fortune over the life of the home loan - refinancing.
Scenario time: Say are signed up with Westpac and your home loan’s rate is set to increase by 20 basis points to 5.68%, by switching to UBank’s UHomeLoan - Spring Offer (Owner Occupier, Principal & Interest) with a 3.99% interest rate (on a $500,000 home loan over 25 years) you would save $488 each month and $146,398 over the life of the loan.
Home loan comparisons on Mozo - rates updated daily
Smart Booster Home Loan
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.85% p.a.variable for 24 months and then 2.25% p.a. variable2.21% p.a.New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
Smart Booster Home Loan
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
- interest rate
- 1.85% p.a.variable for 24 months and then 2.25% p.a. variable
- comparison rate
- 2.21% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% 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.
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.99% p.a. variable1.99% 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.
- interest rate
- 1.99% p.a. variable
- comparison rate
- 1.99% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Variable Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.99% p.a. variable1.99% 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.
- interest rate
- 1.99% p.a. variable
- comparison rate
- 1.99% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes - offset sub account
- Maximum loan to value ratio
- 75.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,500,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Variable Home Loan
Basic Home Loan
Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.14% p.a. variable2.14% 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.
- interest rate
- 2.14% p.a. variable
- comparison rate
- 2.14% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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