Australia’s seventh largest lender Bendigo Bank has become the latest home loan provider to hike rates out of cycle by up to 16 basis points.
They join an ever-growing list of Australian lenders who have increased rates including AMP, Macquarie Bank, ING, Bank of Queensland, Suncorp and Citi blaming the cost of funding (see list of hikes below).
RateCity spokesperson Sally Tindall all eyes are now on the big four banks, who have kept a lid on rates so far.
“With the bank bill swap rate continuing to spike, our big banks have a decision to make. Hike and protect their profit margins, or wear the cost and keep their customers onside.
“The big bank who goes first will cop the most negative publicity. It’s a matter of seeing who blinks first.
“The message for Australian mortgage holders is now clear. Be prepared to shell out extra for your home loan in coming weeks.
“The rate hikes have been moderate but even $20 or $30 extra a month will be a stretch for anyone who’s already feeling the pinch,” said Ms Tindall.
Main players left to hike
Bank of Melbourne
Bendigo Bank rate hikes
- Owner occupier principal and interest loans will increase by 0.10%;
- Owner occupier interest only loans will increase by 0.16%;
- Investment loans will increase by 0.10%;
- Lines of credit will increase by 0.10%.
Out-of-cycle rate hikes
|Lender||Rate hikes||Effective date|
|AMP Bank||up to 0.57%||from 13-Jul|
|Auswide Bank||up to 0.13%||27-Jun|
|Bendigo Bank||up to 0.16%||23-Jul|
|BOQ||up to 0.15%||2-Jul|
|Homeloans||0.15%||May – Jul|
|Loans.com.au||up to 0.10%||6-Jun|
|Macquarie Bank||up to 0.10%||from 13-Jul|
|ME Bank||up to 0.16%||19-Apr|
|MyState||up to 0.09%||28-May|
|Pepper||up to 0.55%||6-Jul|
|Qbank||up to 0.16%||May-23|
|State Custodians||up to 0.10%||18-Apr|
|Suncorp||up to 0.12%||28-Mar|