Bank Australia has increased the interest rate on its basic home loan by 10 basis points.
Available to borrowers with an LVR smaller than 80% (e.g. a house deposit of 20% or higher) the variable interest rate on the Bank Australia Basic Home Loan increased from 3.86% (3.87% comparison rate) to 3.96% (3.97% comparison rate).
While the interest rates on Bank Australia’s fixed rate home loans stayed the same, its comparison rate increased as a result of the change.
Earlier in the month, Bank of Queensland offered up the first rate rise of 2019, citing cost of funding pressures.
But it’s not all rate rises. Some lenders have started 2019 by cutting home loan interest rates. For example, BankVic cut its fixed rates on interest only loans by varying amounts, with the largest cut being 24 basis points.
Greater Bank also cut fixed interest rates on many of its home loan options by as many as 35 basis points, though some fixed rate loans saw some small increases of 5 basis points.
