Slight increases and decreases in rates among lenders this week
A handful of lenders are “tinkering” their variable rates even though the market is slowing down, RateCity.com.au’s research director Sally Tindall (pictured) commented in its latest weekly report.
Suncorp decreased its customer rates by 0.13% to 6.49%, while Up Bank cut rates by 0.60% to 5.85% and Bankwest cut rates by 0.10% to 6.29%.
ING increased rates by 0.05% to 6.19%. Unloan, CBA’s digital offering, increased its rate by 0.25%, and Suncorp increased its own by 0.05% to 6.19%.
Tindall said Unloan’s increase in its rates was in response to the Reserve Bank’s November cash rate hike. “This now puts the digital lender at 5.99%, which is in the top 2% of variable rates on the RateCity.com.au database,” she noted.
“We also saw large banks Suncorp and ING hike their new customer rates by 0.05 percentage points on owner-occupier variable loans paying principal and interest, however Suncorp’s move only affected new customers with a 70-80% loan-to-value ratio (LVR). Conversely, the bank cut the new customer rate on its investor interest-only variable loans,” Tindall added.
The five lenders with the lowest variable rates include: Abal Bank, Illawarra Credit Union, Northern Inland Credit Union, Regional Australia Bank, and Pacific Mortgage Group. Meanwhile, those with the lowest fixed rates include: Abal Bank, Australian Mutual Bank, Up Bank, and RACQ Bank.
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