Fixed rates point to more hikes
ANZ is not the only major bank lifting fixed rates. NAB has raised them twice in three weeks, and CBA and Westpac have made increases of up to 0.48 and 0.45 percentage points respectively over the same period. Canstar said the repricing suggests there is a strong chance of further RBA rate rises.
The major banks’ economists are split on whether the next rise comes soon. ANZ and Westpac expect one more increase in November, which would take the cash rate to 4.85%, while CBA and NAB expect 4.6% to mark the peak.
Variable rates rise across the market
CBA’s lowest variable rate is 6.34%, NAB’s starts from 6.29% and ANZ’s is 6.5%, leaving Westpac the cheapest of the majors at 6.24%. All four rates apply to owner-occupiers paying principal and interest.
More than 40 lenders tracked by Canstar have passed on the full increase, including Bendigo, ING, AMP, Bankwest, St George, and Suncorp. The lowest variable rate among lenders that have announced their new pricing is 5.94%. Canstar expects the average owner-occupier variable rate to settle at about 6.49%.
Tindall said borrowers who had not reviewed their loans could now have a rate starting with a 7, “a figure that was unthinkable even a year ago”.