E Transcon

Main Menu

  • Unsecured Personal Loans
  • Fixed Rate Loans
  • Variable Rate Loans
  • Debt Consolidation Loans
  • Capital

E Transcon

Header Banner

E Transcon

  • Unsecured Personal Loans
  • Fixed Rate Loans
  • Variable Rate Loans
  • Debt Consolidation Loans
  • Capital
Fixed Rate Loans
Home›Fixed Rate Loans›ABC hikes 3-year fixed rate – will other majors follow?

ABC hikes 3-year fixed rate – will other majors follow?

By Mary M. Cox
May 21, 2021
0
0



The ABC has raised its 3-year fixed rate for homeowners, a further sign that Australia may soon see the end of ultra-low fixed rates.

Australia’s largest bank increased its 3- and 4-year fixed rates for homeowners paying principal and interest by 0.05%, and increased some interest-only loans by 0.10%.

This follows a 0.20 percent hike by ABC in March to its 4-year fixed rate. ABC now only has a rate below 2 percent – fixed for 2 years.

ABC Home Loan Changes for Homeowners Paying Principal and Interest:

Lowest rates Old tariff New tariff Switch
Fixed 3 years

2.14%

2.19%

0.05%

Fixed over 4 years

2.19%

2.24%

0.05%

Note: The above rates apply to homeowners paying principal and interest on a fixed price mortgage. Data correct as of 21.05.2021

Changes in mortgage rates over the past month

Lenders who cut Lenders who have worked Current lowest rate
1 year fixed

ten

3

1.67%

2-year fixed

12

3

1.74%

3 years fixed

9

6

1.79%

4 years fixed

1

20

1.95%

5 years fixed

2

17

2.10%

Variable

17

5

1.77%

Source: RateCity. Note that some lenders have increased and reduced several mortgage rates. Data correct as of 05.21.2021.

RateCity.com.au research director Sally Tindall said the CBA has become the first major lender to increase its 3-year fixed rate from the bank’s record low.

“Today’s rate hikes may be small, but they indicate a fixed rate market starting to rise,” she said.

“When the CBA raised its four-year rate in March, a wave of lenders followed in its wake. We expect the same to happen with three-year rates in the coming months.

“Banks anticipate an increase in the cost of funding over the next few years, with the next hike in cash rates expected in 2024, if not sooner, and the RBA’s term funding facility ending just over ‘a month.

“The financing, which provides banks with low, fixed-price money for three years, has helped lenders deliver historically low rates to their customers. Once the funding is complete, many banks will likely recalibrate their rates, ”she said.

Homeowner Mortgage Rates of the Big Four Banks

CBA Westpac ANZ NAB
1 year fixed

2.09%

1.99%

2.04%

2.09%

2-year fixed

1.94%

1.79%

2.04%

1.89%

3 years fixed

2.19%

1.88%

2.04%

1.98%

4 years fixed

2.24%

2.19%

2.24%

2.19%

5 years fixed

2.99%

2.49%

2.24%

2.49%

Variable

2.69%

2.19% for 2 years then 2.69%

2.72%

2.69%

Source: RateCity. Note: Westpac rates are a loan to value ratio of up to 70%. Variable NAB with compensation for loans over $ 750,000. Data correct as of 21.05.2021

Lowest rates on the RateCity database

Rates are for owner-occupiers who pay principal and interest. Certain LVR requirements apply. Data correct as of 21.05.2021



Related posts:

  1. The Single-Parent Homebuyer Diet: What You Need to Know
  2. As house prices rise, mortgage debt also rises
  3. Prosper’s Personal Loan Review: Next Day Financing, Authorized Co-Borrowers
  4. Freddie Mac Price $ 751 Million Multifamily K-Deal, K-LU3

Recent Posts

  • Large lenders cut fixed rates despite Reserve Bank of Australia rate hikes
  • Student loan refinancing rates are falling for 5-year adjustable rate loans
  • Are Federal Student Loans Even “Loans”? From leniency to forgiveness to taxpayer spending. Fairer: allow bankruptcy
  • No mortgage? Therefore, you should still watch out for rate hikes
  • China has lent Pakistan $21.9 billion in short-term loans since 2018: report | world news

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • October 2020

Categories

  • Capital
  • Debt Consolidation Loans
  • Fixed Rate Loans
  • Unsecured Personal Loans
  • Variable Rate Loans
  • Terms and Conditions
  • Privacy Policy