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 20 April 2024
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Featured Product
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Unloan Variable
Owner Occupier, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.99% p.a. variable5.90% p.a.Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
CompareCompareUnloan Variable
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
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- $0.00
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- yes - free
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- yes - free
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- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
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- Weekly, Fortnightly, Monthly
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- -
Read our Mozo Review to learn more about the Unloan Unloan Variable
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Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment6.01% p.a. variable6.14% p.a.Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
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Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- interest rate
- 6.01% p.a. variable
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- 6.14% p.a.
- interest rate
- 6.01% p.a. variable
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- 6.14% p.a.
- Upfront fees
- $134
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- $10.00 monthly
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- $350.00
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- yes - free
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- Maximum loan to value ratio
- 90.00%
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- $5,000
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- $3,000,000
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Read our Mozo Review to learn more about the Bendigo Bank Express Home Loan
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Flex Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment5.99% p.a.
fixed 3 years6.37% p.a.Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
CompareCompareFlex Home Loan
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 5.99% p.a.
fixed 3 years
- comparison rate
- 6.37% p.a.
- interest rate
- 5.99% p.a.
fixed 3 years
- comparison rate
- 6.37% p.a.
- Upfront fees
- $250
- Ongoing fees
- $250.00 yearly
- Discharge Fee
- $300.00
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- yes - free
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- yes - free
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- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- -
- type of mortgage
- Fixed
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- Weekly, Fortnightly, Monthly
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- -
Read our Mozo Review to learn more about the ubank Flex Home Loan
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Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment6.09% p.a. variable6.09% p.a.Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
CompareCompareDiscounted Home Value Loan
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
- interest rate
- 6.09% p.a. variable
- comparison rate
- 6.09% p.a.
- interest rate
- 6.09% p.a. variable
- comparison rate
- 6.09% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $15,000,000
- type of mortgage
- Variable
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- Principal & Interest
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- Owner Occupier
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- Weekly, Fortnightly, Monthly
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- -
Read our Mozo Review to learn more about the HSBC Discounted Home Value Loan
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Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment6.14% p.a. variable6.16% p.a.Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
CompareCompareNeat Home Loan
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
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- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the ubank Neat Home Loan
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* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.
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