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- CBA hikes fixed rates by up to 0.20%
CBA hikes fixed rates by up to 0.20%
Australia’s largest bank, CBA, has today hiked fixed rates by up to 0.20 per cent for owner-occupiers and investors.
ING, Australia’s seventh largest bank, also hiked fixed and variable rates today for new customers only.
Today’s CBA hikes for owner-occupiers paying principal & interest - contact us for CBA investor changes and ING changes
| Rate type | Old lowest rate | New lowest rate | Change |
| 1-year fixed | 2.54% | 2.59% | +0.05% |
| 2-year fixed | 2.69% | 2.84% | +0.15% |
| 3-year fixed | 3.14% | 3.24% | +0.10% |
| 4-year fixed | 3.34% | 3.54% | +0.20% |
| 5-year-fixed | 3.59% | 3.79% | +0.20% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate.
The hikes follow similar moves from big four bank Westpac, which hiked fixed rates on January 21.
CBA rates for owner-occupiers – today vs 1 year ago
| Rate type | 1 year ago | Today | Change | Difference in repayments ($500K) |
| 1-year fixed | 2.19% | 2.59% | 0.40% | $103 |
| 2-year fixed | 2.14% | 2.84% | 0.70% | $182 |
| 3-year fixed | 2.14% | 3.24% | 1.10% | $290 |
| 4-year fixed | 1.99% | 3.54% | 1.55% | $411 |
| 5-year-fixed | 2.99% | 3.79% | 0.80% | $222 |
| Lowest variable | 2.69% | 2.29% | -0.40% | -$104 |
Notes: rates are for owner-occupiers paying principal and interest. Monthly repayments are based on a $500K, 30-year loan.
RateCity.com.au research director, Sally Tindall, said today’s hikes from CBA were unlikely to be the last.
“These hikes come as the cost of fixed rate funding continues to rise, putting the bank’s profit margin under increasing strain,” she said.
“While much of the heavy lifting has already been done, we expect fixed rates will keep on rising in the months to come, not just from the big four banks but across the market.”
The RateCity.com.au database shows that in just 12 months, CBA’s 4-year fixed rate has risen by 1.55 percentage points. This means someone taking out a $500,000, 4-year fixed loan today will be paying $411 more than someone taking out the same loan one year ago.
“Borrowers still wanting to fix should consider a rate lock fee to avoid potentially getting lumped with a higher rate.
“Right now, there are just 28 fixed rates under 2 per cent but the number is dropping rapidly. In a few months’ time they could be extinct,” she said.
Rate lock fees – how the largest lenders stack up
| Lender | Rate lock fee $500k loan | Rate lock fee $1m loan |
| ANZ | $750 | $750 |
| CBA | $500 | $500 |
| NAB | $750 | $1,500 |
| Westpac | $500 | $1,000 |
Note: some lenders charge a flat rate lock fee, others charge the fee as a percentage of the borrowed amount.
What is a rate lock fee?
A ‘rate-lock fee’ is a fee a customer pays to lock in the fixed rate on offer at the time of application (or any time before settlement), protecting them from any rate rises during the process.
The ‘lock’ typically lasts for around 90 days, but this can differ between lenders.
Rate lock fees can run into the thousands of dollars, however, it differs between lenders and in some cases on the size of the loan, with some banks charging a flat fee and others charging a percentage of the loan.
Lowest big four bank owner-occupier home loan rates
| Rate type | CBA | Westpac | NAB | ANZ |
| 1 yr fixed | 2.59% | 2.39% | 2.54% | 2.39% |
| 2 yr fixed | 2.84% | 2.59% | 2.69% | 2.59% |
| 3 yr fixed | 3.24% | 3.04% | 3.14% | 2.99% |
| 4 yr fixed | 3.54% | 3.34% | 3.34% | 3.39% |
| 5 yr fixed | 3.79% | 3.59% | 3.59% | 3.59% |
| Variable | 2.29% | 2.19% | 2.29% | 2.19% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
Disclaimer
This article is over two years old, last updated on February 3, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 22 Dec, 2024
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