The window of opportunity to secure a low fixed rate home loan could have closed with the major banks now moving to bump up fixed term rates. Effective today, the Commonwealth Bank’s standard three year fixed rate home loan will rise by 40 basis points to 6.19 per cent while its five year rate will rise by 45 basis points to 6.84 per cent.
Yesterday Westpac also moved to increase its fixed rate home loans with its three year rate rising by 40 basis points to 5.59 per cent. NAB meanwhile moved under the radar last week, increasing its fixed rates – the three year rate is now up 20 basis points at 5.49 per cent.
ANZ has not made any recent changes to its fixed rates however its three year fixed rate was already most expensive, along now with CBA, at 6.19 per cent.
Despite expectations that the cash rate will fall further this year the rising cost of funds has once again been blamed for the banks’ decisions to claw back shrinking home loan margins.
A Westpac spokesperson told Mortgage Business its increases were a response to “a number of competitors’ moves” and “ongoing funding costs” while CBA said its changes followed recent increases in the wholesale cost of funds.
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