Find out whether you’re affected and what you can do about it
You may have noticed in the media recently that some banks have increased interest rates on certain home loan products. The banks with the most highly publicised rate rises are ANZ, Commonwealth Bank, Westpac, Bank of Melbourne and BankWest.
Commonwealth Bank has increased all variable home loan rates by 15 basis points. ANZ have hit all borrowers with a 16 basis point increase. As of September 19, Westpac implemented a 14 basis point increase to variable interest rates for owner-occupiers and investors.
The change means a customer with a $400,000 loan from Commonwealth Bank will pay an extra $37 a month, or $447 a year. An ANZ customer with the same loan will pay an extra $40 a month, or $476 a year. A Westpac customer with a $500,000 loan will have to pay an additional $43 a month or $516 a year. A customer with a $1 million loan will pay an extra $87 a month or $1044 a year.
The good news is that there are plenty of lenders out there that are currently offering some amazing rates to entice new customers. So now is a good time to start shopping around, as there could be significant savings to be made.
Here are a few examples of the types of rates that are available:
ING – 3.68% Owner Occupied Home Loan (comparison rate 4.00%)
NAB – 3.69% Owner Occupied Home Loan (comparison rate 3.73%)
PLAN Lend – 3.69% Owner Occupied Home Loan (comparison rate 3.71%)
If you would like some assistance comparing lenders and finding a mortgage that is competitive and relevant to your needs, please give me a call or send me an email, I’d love to help you.
*Photo by Rawpixel on Unsplash*