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Westpac group changes rates

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Reporter 4 minute read

A big four bank and its subsidiaries have changed interest rates on a range of loans for both owner-occupiers and investors.

Following the announcement that Westpac would be introducing changes to interest rates on both principal and interest (P&I) and interest-only (IO) fixed rate loans from 1 August, the big four bank's subsidiaries have also announced changes.

From 1 August, St. George, Bank of Melbourne and BankSA will also all be changing rates on new fixed rate home loan products, for both investors and owner-occupiers.

For those three banks, owner-occupier fixed rates (P&I) will be 4.19 per cent for one-year, going up to 4.44 per cent for five-year loans (5.04 and 4.94 per cent comparison, respectively).

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IO lending will range from 4.74 per cent (one-year loans) to 5.14 per cent (five-year loans).

Residential Investment Standard Fixed Rate (P&I) will start from 4.34 per cent while IO loans will start from 4.94 per cent (5.56 and 6.09 per cent comparison).

Brokers are being advised that if customers have already rate-locked their fixed rate, and if the rate locked in is higher than the new rate, then they will receive the new lower carded rate applicable to their loan on the date the loan settles (provided that there is no further fixed rate change).

If the rate locked in is lower than the new rate, then they will not be affected.

From this Friday (28 July), Friday, Suncorp Bank will also be increasing rates for all fixed rate investment lending for both new customers and pipeline applications.

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For the Home Package Plus, standard rates will increase by 18 basis points for one- and two-year fixed rates (to 4.54 per cent and 4.64 per cent, respectively), and by 30 basis points for three- and five-year fixed terms (to 4.74 per cent and 4.84 per cent).

The annual interest in advance interest rates will also increase by 18 basis points for one-year fixed rates (to 4.39 per cent) and by 30 basis points for three- and five-year fixed rates (4.59 per cent and 4.69 per cent).

According to Suncorp Bank, the changes to investment lending fixed interest rates “ensure the bank remains compliant with regulatory caps on investor and interest-only lending”.

Existing lending will not be impacted.

[Related: Major bank hikes investor rates by 31 basis points]

Westpac group changes rates
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