On Friday CommBank increased fixed home loan interest rates, this time by up to 50 basis points.
Commonwealth Bank increased a whole gamut of fixed mortgage rates for both owner occupiers and investors by between 10 and 50 basis points.
The home loan to get a 50 basis point - half a percentage point - increase was the owner occupied Wealth Package paying principal and interest (P&I), fixed for four years.
It is now 2.89% p.a. (3.95% p.a. comparison rate*).
Other noteworthy increases include:
- Residential Fixed P&I 3 Years: 40 basis point increase to 2.84% p.a. (4.25% p.a. comparison rate*)
- Investment Fixed P&I 3 Years: 30 basis point increase to 2.84% p.a. (4.67% p.a. comparison rate*)
Just three weeks ago, CBA increased many of the same fixed rates by 10 basis points.
These increases also come a day after Westpac increased rates on fixed home loans.
Variable rates down, fixed rates up
It's been a fairly busy week for rate changes after the RBA signalled it could increase the cash rate earlier than 2024.
On Friday AMP increased three fixed home loan rates:
- Professional Package Residential Fixed P&I 2 Years 80%: 30 basis point increase to 2.14% p.a. (2.60% p.a. comparison rate*)
- Professional Package Residential Fixed P&I 2 Years 90%: 30 basis point increase to 2.34% p.a. (2.88% p.a. comparison rate*)
- Basic Fixed P&I 2 Years: 30 basis point increase to 2.34% p.a. (2.83% p.a. comparison rate*)
BCU increased a wide range of fixed home loan rates by between 5 and 20 basis points, but decreased a few of its variable 'OMG!' home loan products for owner occupiers by between 5 and 10 basis points.
Earlier in the week, Suncorp also increased fixed home loan rates by between 9 and 35 basis points while at the same time decreasing variable 'Back to Basics' home loans by between 1 and 21 basis points.
HSBC also decreased its variable home loan rate for owner occupiers to 1.97% p.a. (1.98% p.a. comparison rate*), applicable to new customers from 8 November.
"This is among the lowest variable rates we've ever offered in Australia, so provides both affordability and flexible repayment options," said Jessica Power, HSBC's Australian head of wealth and personal banking.
Fixed rates lose market lustre
The latest ABS lending indicators data shows a slight wane in the popularity of fixed mortgages.
In September, $24.64 billion in fixed mortgages were funded in the month, down from $26.79 billion in August, and from $27.45 billion in July.
This represents approximately 45.29% of the total residential mortgage market, down from 47.06% in July.
"CBA hikes fixed mortgage rates, three weeks after its last increase" was originally published on Savings.com.au and was republished with permission.