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 - last updated January 19, 2021
Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
Sorted by:
Mozo Order
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
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.
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2.34% p.a. variable
2.34% p.a.
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
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.
Go to siteCompare2.19% p.a. variable
2.19% p.a.
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
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.^
Go to siteCompare2.04% p.a.
fixed 2 years2.79% p.a.
Special Offer Reward Me Fixed Rate Home Loan
Owner Occupier, LVR <80%, 300k+
2.04% p.a.
fixed 2 years2.79% p.a.
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
Go to siteCompare2.09% p.a.
fixed 2 years2.56% p.a.
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
2.09% p.a.
fixed 2 years2.56% 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.
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^See information about the Mozo Experts Choice Home Loans Awards
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