Lenders push through another wave of home loan hikes, shrinking the pool of sharp deals for first-home buyers and property investors.
Canstar’s latest Weekly Rate Wrap-up shows 35 lenders increased 313 owner-occupier and investor variable rates by an average of 0.24%, while 31 lenders raised 727 fixed rates by an average of 0.27%.
“The short week on account of Easter did little to limit the flood of lenders hiking mortgage rates, with 35 lenders increasing variable rates on the back of the March RBA decision, but also 31 lenders lifting fixed rates by an average of 0.27%,” Canstar.com.au data insights director Sally Tindall (pictured) said.
Among the majors, Westpac and ANZ have both moved their lowest fixed mortgage rates above 6%, leaving NAB with the sharpest fixed rate of 6.04%. That leaves many borrowers weighing the trade-off between riding variable mortgage rates higher or locking in for certainty at levels that begin with a six.
Tindall noted that “While a fixed rate that starts with a ‘6’ wouldn’t normally tempt borrowers into fixing their mortgage, predictions of multiple rate hikes still to come will have some considering the cost of locking in certainty.”
At the sharp end of rate competition, Canstar reports that “The lowest advertised rate on the Canstar database is now a variable one as competition continues in this space.”
LCU currently leads with a 5.44% variable rate, while Horizon Bank and Pacific Mortgage Group each offer a single rate under 5.5% aimed at specific segments such as first-home buyers and borrowers with large deposits.
With only five rates below 5.5% left on the database, brokers may need to move quickly to secure the remaining ultra-competitive offers for eligible clients.
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