Cashback offers, big rate discounts and special low variable rates were withdrawn or adjusted by a number of lenders in June, as mortgage providers shifted their focus from market share to margin preservation. Fixed rates also rose sharply.
According to the latest Mozo Banking Roundup, Bankwest, bcu bank and Heritage Bank joined the growing list of lenders withdrawing cashback offers. St George cut its cashback from A$4000 to $2000.
Commonwealth Bank increased its Extra Home Loan owner occupier rate by 47 bps and its Wealth Package owner occupier rate by 35 bps.
Greater Bank’s Discount Great Rate Home Loan rate went up 50 bps for owner occupiers. HSBC’s variable rates went up by an average of 45 bps, with some going up as much as 85 bps.
ING and Bank of Queensland lifted rates by 35 bps. Unloan increased rates by as much as 60 bps.
Fixed rates went up sharply as benchmark rates adjusted to market expectations that the RBA would keep rising rates and that inflation would stay high for longer than expected.
AMP raised its one-year rate by 100 bps, its two-year rate by 75 bps and its three-year rate by 70 bps. ANZ increased its one-year rate by 30 bps and its three-year rate by 60 bps.
Most of the fixed-rate increases were for terms of one to three years. Commonwealth Bank increased its rates for one to three years but cut its four and five-year rates. Westpac increased one-year rates by up to 85 bps and three-year rates by 95 bps but cut some longer-term rates.
The current rate leader in the Mozo database is Mutual Bank, with variable rate offers of 5.24 per cent for owner occupiers and 5.64 per cent for investors.
Among the major banks, the best basic variable rate offer is a 6.09 per cent two-year into rate from Westpac, the best package rate is Commonwealth Bank’s 6.24 per cent and the best fixed-rate offer is ANZ’s 5.99 per cent two-year offer.