Two major banks have increased their fixed interest rates for investors following the RBA’s updated forecast of the potential hike in cash rates.

Based on current economic forecasts, the RBA expects to meet its inflation and unemployment targets by 2023, which would lead to a rate hike.

Following the announcement, CommBank and Westpac increased their fixed interest rates for investors by as much as 30 basis points.

Prior to the recent announcement of the RBA, several lenders have already adjusted their long-term flat rates.

CommBank

CommBank expects the central bank to raise cash interest rates as early as November this year.

In response to the RBA’s recent announcement, it increased both its short-term and long-term fixed rates among its standard and package investor products.

Here are some of the changes:

  • Investment Fixed P&I 1 yr – increased by 20bp to 2.84% pa (5.05% pa comparison rate)
  • Investment Fixed P&I 2 yrs – increased by 30bp to 2.94% pa (4.87% pa comparison rate)
  • Investment Fixed P&I 3 years – increased by 30bp to 2.84% pa (4.67% pa comparison rate)
  • Investment Fixed P&I 5 years – increased by 10bp to 3.34% pa (comparison rate of 4.54% pa)
  • Equity package Investment Fixed P&I 1 yr 150k+ – 20 bps higher to 2.69% pa (4.67% pa comparison rate)
  • Equity package Investment Fixed P&I 2 yr 150k+ – 30bps increased to 2.79% pa (comparison rate of 4.54% pa)
  • Equity package Investment Fixed P&I 3 yr 150k+ – 30 bps increased to 2.69% pa (4.38% pa comparison rate)
  • Equity package Investment Fixed P&I 5 yr 150k+ – 10bps up to 3.19% pa (4.34% pa comparison rate)

westpac

Westpac, for its part, has maintained its stance that the RBA will not raise rates until the first quarter of 2023.

Still, it has already raised its fixed interest rates for investors, with the three-year maturity getting the biggest increase of 20 basis points.

  • Investment Fixed IDE 3 years 70% – increased by 20bp to 2.89% pa (4.79% pa comparison rate)
  • Investment Fixed IDE 3 years 80% – increased by 20bp to 2.99% pa (4.88% pa comparison rate)
  • Investment Fixed P&I 3 years 70% – increased by 20bp to 2.79% pa (comparison rate of 4.58% pa)
  • Investment Fixed P&I 3 years 80% – increased by 20bp to 2.89% pa (4.67% pa comparison rate)
  • Premier Advantage Investment Fixed P&I 3 Years 70% – increased by 20bp to 2.59% pa (3.85% pa comparison rate)
  • Premier Advantage Investment Fixed P&I 3 Years 80% – increased by 20bp to 2.69% pa (3.94% pa comparison rate)

Westpac also raised four- and five-year yields by 10 basis points.

ANZ and NAB have also made some changes to their fixed interest rates for investors in recent weeks. Here are some of the changes:

ANZ

ANZ also raised its three-year fixed rate for investors, which is now 25 basis points higher.

  • Investment Fixed 3 years 80-90% – 2.89% per year (4.49% per year comparison rate)
  • Investment Fixed IO 3 years ≤80% – 3.04% per year (4.50% per year comparison rate)

However, it lowered its one-year fixed rate for investors by 15 basis points to 2.54% per annum (4.81% per annum comparison rate)

NAB

NAB followed the current trend in fixed interest rates, raising longer-term rates and lowering one-year rates.

  • Choice Package Inv Op Maat Fixed – P&I 1 yr 150k+ – decreased by 15 basis points to 2.39% per annum (4.71% per annum comparison rate)
  • Choice Package Inv Op Maat Fixed – P&I 3 yr 150k+ – increased by 10bp to 2.54% pa (4.40% pa comparison rate)
  • Choice Package Inv Op Maat Fixed – P&I 4 yr 150k+ – 5 bps higher to 2.99% pa (4.40% pa comparison rate)
  • Choice Package Inv Op Maat Fixed – P&I 5 yrs 150k+ – increased by 15bp to 3.09% pa (4.33% pa ​​comparison rate)

Photo by Iyan Kurnia on Unsplash.

Top Suburbs: Sth Toowoomba, Keperra, Hebersham, Mt Gravatt, Midland

Get help with your real estate investment

Need help finding the right loan for your investment?

When investing in real estate, it is important to ensure that you not only have the lowest available interest rate you can get, but also have the right loan characteristics for your needs.

Fill in a few details below and we’ll have a local mortgage broker contact you to find out what features or loan types are right for your needs. We even help with the paperwork. Moreover, an appointment is free.

We value your privacy and treat all your information seriously – you can view our privacy policy here



Source