© Reuters.
Major Australian banks, including ANZ, ING, and Macquarie, have increased their home loan interest rates in anticipation of a 25 basis point cash rate hike by the Reserve Bank of Australia (RBA). The cash rate is projected to rise to 4.35% due to recent economic indicators.
ANZ has increased its fixed home loan rates by up to 0.35%, reversing a cut made in September. This move significantly alters the bank’s residential fixed rates and positions ANZ as one of the least competitive among the big four banks’ lowest advertised fixed rates.
ING has raised its rates by up to 0.4%, undoing an August rate drop. The bank has increased both new customer variable and fixed home loan rates.
Macquarie Bank has also responded to the expected cash rate increase with a rate hike of up to 0.36%. The bank reported a $1.4 billion six-month profit but suffered a 0.74% share price drop, leading to investor disappointment. Additionally, Macquarie has adjusted its Basic Owner Occupied and Basic Investment rates.
Despite these increases, some smaller lenders are reducing their rates. Bendigo Bank has lowered rates on its Complete Home Loan product, while ME Bank has cut rates on its Member Package Flexible Home Loans. Meanwhile, AMP (OTC:) Bank has altered its variable home loan offerings and Professional Package rates, and RACQ Bank has increased its Fair Dinkum Home Loan rates.
These changes come as ABS data shows a sharp decrease in preference for fixed rates, dropping from 46% in July 2021 to just 4% in September.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
