After RBA announced that it will be keeping the official cash rate chilled this month, Westpac and Macquarie Bank made out-of-cycle rate movements on their own home-loan offerings.
Macquarie Bank, the fifth largest bank in Australia, raised its existing owner-occupier variable rates by six basis points for principal-and-interest (P&I) loans and 16 basis points for interest-only (IO) loans.
According to The Australian Financial Review, the changes will take effect on 21 Feb and will impact all loan-to-value ratio (LVR) bands. This means that the owner-occupier rate for a P&I loan at a 70% LVR will be 3.81%. On the other hand, IO loans with the same LVR will bear a 4.4% interest rate.
Macquarie also increased the rate of its P&I and IO variable investment loans by 16 basis points across all LVR bands.
The bank also announced a rate cut of 10 to 40 basis points for its four- and five-year fixed-rate home loans, both for owner-occupiers and investors.
Westpac also reduced the interest rates of some of its home-loan offerings.
It slashed the rate of its two-year fixed Premier Advantage Package loan by 10 basis points to 3.79%. For a borrower making P&I repayments on a $600,000 mortgage with a 30-year term, this translates to a monthly saving of roughly $35.
On the other hand, the rate of its Premier Advantage Package five-year fixed loan will increase by 10 basis points to 4.19%.
Westpac's regional subsidiaries including BankSA, St. George Bank, and Bank of Melbourne also made some rate movements on some of their fixed-rate home loan offerings.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan