Lenders calibrate rates ahead of RBA freeze decision

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The Reserve Bank of Australia left the spot rate unchanged at 0.1%.

The central bank maintains it sees no possibility of rate hikes until inflation and unemployment targets are met, which in its current forecast will be around 2023.

Previously, the RBA aimed to increase the cash rate by 2024.

However, the big banks are showing a hike much sooner, with CommBank projecting the first rate hike by November 2022.

Wealthi co-founder Peter Esho said inflationary pressures would likely impact the RBA’s decision in the coming months.

“The RBA governor will spend the next few months articulating the new dossier towards opening the door and reassessing options,” he said.

“We believe the euphoria in the residential real estate market will begin to subside and bring with it a much needed reality check.”

“Short-term real estate gains are good vanity measures for investors, but the long-term investment environment is more important to maintain. “

Meanwhile, several lenders changed their mortgage rates ahead of the RBA’s decision.

Queensland Bank

Bank of Queensland increased its reduced residential fixed rates by 10 basis points.

The rate increase applies to all fixed rate conditions.

  • Residential Fixed 1 year Discount rate – 2.39% per year (comparison rate of 3.19% per year)
  • Residential Fixed 2 years Discount rate – 2.09% per year (comparison rate of 3.08% per year)
  • Residential Fixed 3 years Discount rate – 2.29% per year (comparison rate of 3.05% per year)
  • Residential Fixed 4 years Discount rate – 2.69% per year (comparison rate of 3.12% per year)
  • Residential Fixed 5 years Discount rate – 2.79% pa (3.14% pa comparison rate)

Loans with LVRs of up to 90% will also have a higher fixed rate.

People’s choice

People’s Choice, owned by its members, has adjusted its fixed and variable rates for residential and investment real estate loans.

Here are some of the notable changes:

  • Fixed residential P&I 4 years – up 25bp to 2.79% pa (comparison rate of 4.08% pa)
  • Owner of the mortgage package Occupied P&I Fixed 5 years ≤80% – up 5bps to 2.89% pa (comparison rate of 3.09% pa)
  • Fixed P&I investment 4 years – up 25bps to 2.99% pa (comparison rate of 4.57% pa)
  • 5-year fixed P&I investment mortgage package ≤80% – up 5bps to 3.19% pa (comparison rate of 3.38% pa)
  • Mortgage loan package Standard Variable P&I ≤80% – down from 35bps to 2.49% (comparison rate of 2.94% per year)
  • Real estate loan package Investment Standard Variable P&I ≤80% – down from 35bps to 2.79% (comparison rate of 3.23% pa)

UBank

Online lender UBank has made some changes to the rates on its investor lending products.

He reduced the variable rate under his UHomeLoan P&I Discount Offer from 21 basis points to 2.34% per year (comparison rate of 2.34% per year).

At the same time, the bank increased its fixed rates for investors:

  • Inv UHomeLoan Fixed IO 3 years – up 15 bps to 2.39% pa (comparison rate of 2.39% pa)
  • Inv UHomeLoan Fixed P&I 3 years – up 15 bps to 2.24% pa (comparison rate of 2.34% pa)
  • Inv UHomeLoan IO fixed 5 years – up 15bps to 2.79% pa (comparison rate of 2.54% pa)
  • Inv UHomeLoan Fixed P&I 5 years – up 10bps to 2.64% pa (comparison rate of 2.48% pa)

UBank has also increased its fixed rates for homeowners. Here are some of the changes:

  • UHomeLoan P&I fixed 3 years – up 24bps to 2.09% pa (comparison rate of 2.19% pa)
  • UHomeLoan Fixed PI 3 years 80-85% – up 24bps to 2.29% pa (comparison rate of 2.35% pa)
  • UHomeLoan Fixed IO 3 years 80-85% – up 25bps to 2.54% pa (comparison rate of 2.41% pa)

Homestar Finance

Non-bank Homestar Finance has followed the downward trend of fixed one-year rates while increasing long-term rates.

Its biggest change was the 70bp increase in its P&I fixed in star over 2 years owner-occupant product now showing a rate of 2.49% pa (comparison rate of 2.19% pa)

Here are some of the other changes Homestar Finance has made to its homeowner and investor products:

  • Investment Star Fixed P&I Fixed 1 year 80% – down 10bps to 2.49% pa (comparison rate of 2.34% pa)
  • Investment Star Fixed P&I Fixed 3 years 80% – up 30bps to 2.89% pa (comparison rate of 2.47% pa)
  • Star Fixed P&I 1 year 80% – down 10bps to 2.29% pa (comparison rate of 2.14% pa)
  • Star Fixed P&I 3 years 80% – up 30bps to 2.69% pa (comparison rate of 2.27% pa)

Australian military bank

The member-owned Australian Military Bank has made one of the industry’s biggest changes to floating rates in recent months.

The bank reduced its standard variable rate by 159 basis points to 3.09% (3.13% from the benchmark rate).

MOVE Bank

MOVE Bank introduced a 10 basis point increase in its Lockit Fixed 3 years Special offer, which now carries a rate of 1.99% pa (comparison rate of 3.24% pa)

Aussie

Aussie made cuts of up to 20 basis points on its variable and fixed loans.

Here are some important changes:

  • Increase variable P&I by 80% – down from 20bps to 1.99% pa (comparison rate of 2.03% pa)
  • Elevate Fixed 1 year P&I – down 10bps to 1.89% pa (comparison rate of 2.65% pa)
  • Edge Variable P&I special offer – down from 20bps to 1.99% pa (comparison rate of 2.02% pa)
  • Edge P&I Fixed 1 year special offer – down 10 basis points to 1.89% pa (comparison rate of 2.64% pa)

The changes also apply to products with an offset account function.

AMP Bank

AMP Bank has reduced owner-occupant variable rates by up to 10 basis points as part of its business package.

The bank recently cut its variable investment rates by up to 40 basis points under the same product line.

  • Professional package owner Busy P&I ≤60% 100-499k – down 10bps to 2.19% pa (comparison rate of 2.61% pa)
  • Owner of the Occupied P&I professional package 60-80% 100-499k – down 10bps to 2.24% pa (comparison rate of 2.66% pa)
  • Owner of the Occupied P&I professional package 80-90% 100-499k – down from 10bps to 2.54% pa (comparison rate of 2.95% pa)

Suncorp Bank

Suncorp Bank has made several changes to its fixed and variable rates for homeowners and investors.

Here are the biggest changes:

  • Investment Home Package Plus P&I Fixed 5 years ≤80% Special offer – up 35bp to 2.98% pa (comparison rate of 3.34% pa)
  • Investment Home Package Plus P&I Fixed 1 year 80-90% Special offer – up 24bps to 2.58% pa (comparison rate of 3.45% pa)
  • Home Package Plus P&I Fixed 5 years ≤80% Special offer – up 29bps to 2.78% pa (comparison rate of 3.06% pa)
  • Investment Back to basics P&I 70-80% Special offer – down from 31bps to 2.48% pa (comparison rate of 2.49% pa)
  • Back to Basics Better Together P&I 70-80% Special Offer – down 21bp to 2.23% pa ​​(comparison rate of 2.24% pa)
  • Back to Basics Better Together P&I ≤70% Special Offer – down 11bps to 2.18% pa (comparison rate of 2.19% pa)

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