ABC raises fixed rates for second time in 18 days

Australia’s largest bank, CBA, raised fixed rates for the second time in less than three weeks, with increases of up to 0.25%.

The CBA last raised fixed rates on Feb. 3, up to 0.20% for homeowners and investors.

As a result, its owner-occupant fixed rate for 2 years is now in line with pre-COVID levels (February 2020). Its longer-term fixed rates are already significantly higher than pre-pandemic levels. Only the CBA’s 1-year fixed and variable rates are lower than they were two years ago.

Today’s CBA increases for homeowners paying principal and interest – contact us for CBA investor changes

Rate type Lowest old rate New lowest fare Change
1 year fixed

2.59%

2.79%

+0.20%

2 year fixed

2.84%

2.99%

+0.15%

fixed 3 years

3.24%

3.49%

+0.25%

4 years fixed

3.54%

3.69%

+0.15%

5 years fixed

3.79%

3.99%

+0.20%

Note: The above rates apply to owner-occupiers who pay the principal and interest of a flat rate.

CBA rates for homeowners – today vs before COVID, February 2020

Rate type Pre-COVID (February 2020) Today Change Difference in refunds ($500,000)
1 year fixed

2.99%

2.79%

-0.20%

-$54

2 year fixed

2.99%

2.99%

0.00%

$0

fixed 3 years

2.99%

3.49%

0.50%

$137

4 years fixed

3.19%

3.69%

0.50%

$139

5 years fixed

3.19%

3.99%

0.80%

$225

Lowest variable

3.22%

2.29%

-0.93%

-$246

Notes: Rates are for homeowners paying principal and interest. Monthly repayments are based on a $500,000 loan over 30 years.

RateCity.com.au research director Sally Tindall said today’s CBA rises show the bank is feeling the pressure of sustained increases in funding costs.

“It’s hard to believe that just five months ago the ABC was offering a fixed rate loan below 2%,” she said.

“Since then, the CBA has increased six times, raising most of its fixed homeownership rates above pre-pandemic levels.

“The big banks in particular have given up on competing with cheap lenders on fixed rates. If customers want to settle with four major banks today, chances are they will have to pay more.

“There are still relatively low rates from low cost lenders, however, in this environment they are unlikely to stick around for long. The RateCity.com.au database shows there is only one 2-year fixed rate starting with a ‘1’, and only 14 1-year rates below that,” she said. declared.

The Big Four Banks’ Lowest Home Loan Rates for Homeowners

Rate type ABC Westpac NAB ANZ
1 year fixed

2.79%

2.49%

2.64%

2.49%

2 years fixed

2.99%

2.74%

2.89%

2.89%

3 years fixed

3.49%

3.14%

3.34%

3.39%

4 years fixed

3.69%

3.54%

3.54%

3.79%

5 years fixed

3.99%

3.79%

3.69%

3.99%

Variable

2.29%

2.19%

2.29%

2.19%

Source: RateCity.com.au. Note: Certain LTV requirements apply.

Lowest homeownership mortgage rates on RateCity.com.au

Category Lender Rate
1 year fixed Unit Bank

1.84%

2 years fixed Geelong Bank

1.99%

3 years fixed Geelong Bank/Bank First

2.39%

4 years fixed Bank first

2.64%

5 years fixed Bank first

2.64%

Variable Reduce home loans

1.77%

Source: RateCity.com.au. Note: Rates apply to homeowner paying principal and interest, certain LVR and location restrictions apply.

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