A mutual bank has lifted its fixed rates on owner-occupier mortgages by 10 basis points.
Teachers Mutual Bank (TMB) has raised its fixed rates on principal and interest (P&I) owner-occupier home loans by 10 basis points.
Effective since Tuesday (6 November), the two-year fixed rate for P&I owner-occupier mortgages has increased to 3.88 per cent p.a. (with a comparison rate of 4.97 per cent p.a.), while the three-year fixed rate has risen to 3.98 per cent p.a. (with a comparison rate of 4.89 per cent p.a.).
The rate changes apply to all of TMB’s banks including Firefighters Mutual Bank and Unibank.
All other mortgage interest rates remain unchanged.
In a disclosure to brokers, TMB’s head of third-party distribution said that interest rates are “subject to change at any time”, but that brokers can lock a rate in for their clients for 90 days with the bank’s Fixed Rate Lock option, which comes with a fee of 0.15 of a percentage point of the total amount financed.
This is the second rate hike announcement made by Teachers Mutual Bank this year.
For the first time in 12 months in July, TMB had raised its fixed rates, after cutting them in November last year, attributing the decision to “increased market pressures”.
ING Australia has also in the last week announced changes to its fixed rates on both investment and owner-occupier loans, cutting some of its loans by up to 36 basis points while increasing the others.
Rate hikes have been introduced by numerous lenders this year, despite the Reserve Bank of Australia keeping its cash rate at a record low of 1.5 per cent for 27 consecutive months. The moves have been largely attributed to rising wholesale funding costs.