Which bank has the cheapest standard variable home loan rate? The banks have moved independently of the Reserve Bank of Australia (RBA), lifting rates despite the RBA keeping the official cash rate steady at 4.25 per cent at its last meeting.
Taking a look at those new rates now, ANZ Banking Corporation
(ASX:ANZ) was the first of the Big Four to make a move lifting its rate by 6 basis points to 7.36 per cent. Westpac Banking Corporation
(ASX:WBC) increased its lending rates by 10 basis points soon after, lifting its standard variable rate to 7.46 per cent. The Commonwealth Bank of Australia
(ASX:CBA) raised its rate by 10 basis points to 7.41 per cent. National Australia Bank Limited
(ASX:NAB) raised its rate by 9 basis points to 7.31 per cent. Bendigo and Adelaide Bank Limited
(ASX:BEN) lifted its standard variable rate by 15 basis points to 7.45 per cent. BankSA is increasing its standard variable home loan rate by 12 basis points to 7.42 per cent and St George, which alongside BankSA is owned by Westpac, follows suit lifting its standard variable rate by 12 basis points to 7.42 per cent. Bank of Melbourne has followed lifting its rate by 10 basis points to 7.4 per cent.
And Australian Bureau of Statistics data shows the value of dwelling finance commitments rose 3.8 per cent, seasonally adjusted in December. The number of loans taken out by people who live in their own homes rose 2.3 per cent for the month, above analysts’ expectations of a 1.8 per cent increase. The first home buyer component of the market rose to 20.9 per cent, up from 20 per cent in November.
The Real Estate Institute of Australia says the numbers show that first home buyers are gradually returning to the market and we should expect modest increases to continue.
