CommBank joins ME and Suncorp for a late November fixed rate home loan hike

It may be the season of Black Friday sales, but several of Australia’s biggest lenders have used the opportunity to increase their fixed home loan rates, though there were some cuts to variable rates too.

Commonwealth Bank has today increased fixed rates for the third time since September, with the changes seeing owner-occupier fixed rates rising by up to 0.30 percentage points and rates for investors hiking by up to 0.60 percentage points. CommBank’s most significant rate changes for owner-occupiers today are to three- and five-year fixed rates with principal and interest repayments, which have both risen by 0.30 percentage points. Since 1 September 2021, the rates on these two products have jumped up by 0.80 and 0.40 percentage points, respectively.

Suncorp has also shaken things up, hiking rates on a range of fixed rate products for owner-occupiers and investors, while lowering rates on other products such as its variable Back to Basics range and some shorter-term fixed loans. The most significant hike is to its Home Package Plus principal and interest three-year fixed 80-90% Special Offer home loan, which has seen a rise of 0.62 percentage points.

Finally, ME has lowered rates on its variable Member Package Flexible Home Loan for owner-occupiers by up to 0.34 percentage points, while hiking fixed rates by up to 0.30 percentage points on other products.

You can see view the current rates on offer from these lenders, as well as the other providers on Canstar’s database, on our comparison tables.

At its November meeting, the Reserve Bank of Australia (RBA) held the cash rate steady, but some experts have voiced concerns that rates could rise in years to come, and home loan borrowers have been urged to consider ‘interest rate proofing’ and locking in fixed rates while they are still relatively low.

The tide of fixed rate changes has become a “surge”

Mitch Watson, Canstar’s General Manager of Research and Insights, said today “the tide of fixed rate changes has turned into a surge. Anyone sitting on the fence about whether to fix their home loan interest rate may have missed their chance for the best rates among the major banks, but there are still some good deals to be found in the market.”

He added: “Canstar currently lists 91 fixed rates and 61 variable rates below 2%. The lowest fixed rates in the market are in the 1- to 2-year fixed term range and are as low as 1.59% (comparison rates from 2.15%). Fixed rates in all circumstances do provide certainty around repayments but can come with restrictions on repaying the loan during the fixed term.”

Mr Watson warned borrowers that rates are on the move, adding that if you have been thinking about fixing, now is the time to consider your options. “Don’t compound the festive debt hangover by waiting until the new year to do a home loan health check,” he said.

What are the lowest home loan rates on Canstar’s database?

As of today, Canstar research has crunched the numbers and found that the lowest home loan rates on our database are as follows:

• Variable rate: Reduce Home Loans’ Super Saver Variable ≤80% (Max LVR 80%. Interest rate 1.77%, comparison rate 1.86%)
• 1-Year Fixed: Greater Bank’s Great Rate Discount Fixed 1 yr $150k+ (Max LVR 80%. Interest rate 1.59%, comparison rate 2.15%)
• 2-Year Fixed: Greater Bank’s Great Rate Discount Fixed 2 yrs $150k+ (Max LVR 80%. Interest rate 1.59%, comparison rate 2.10%)
• 3-Year Fixed: Australian Mutual Bank’s Residential Fixed 3yrs (Max LVR 95%. Interest rate 1.98%, comparison rate 2.54%)
• 4-Year Fixed: Regional Australia Bank’s Partnership Advantage Fixed P&I 4yrs (Max LVR 95%, Interest rate 2.39%, comparison rate 3.19%)
• 5-Year Fixed: BankVic’s Premium Home Fixed 5yrs 50k+ (Max LVR 950%. Interest rate 2.49%, comparison rate 3.59%)

Source: www.canstar.com.au – 26/11/2021. Based on owner-occupier loans on Canstar’s database, available for a loan amount of $500,000, at any LVR and with principal & interest repayments. Comparison rate calculated based on a loan amount of $150,000 and loan term of 25 years. Read the Comparison Rate Warning. Lowest rate for each loan type selected based on the lowest interest rate, followed by the lowest comparison rate.

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