Home loan rates rise: Bendigo and Adelaide starting a trend?

Adam Smith 15 December 2016

house graph vectorBendigo Bank have raised variable rates for owner occupiers.

In the weeks surrounding the Reserve Bank’s final board meeting of 2016, lenders have raised interest rates in spite of the RBA’s decision to hold the cash rate steady. While the moves have thus far primarily impacted fixed rates and investor variable rates, Bendigo Bank has announced it will raise variable rates by 10 basis points for both investors and owner occupiers.

The change takes the bank’s variable rate for owner occupiers to 5.48% and its investor rate to 5.76%. The changes come into effect from 15 December.

Full round-up of out-of-cycle rate changes

Bendigo and Adelaide Bank managing director Mike Hirst said the change reflected rising funding costs, and argued that recent “ultra-competitive” home loan rates were “unsustainable”.

“The cost of funding these loans through both retail deposits and wholesale term debt is rising. Global financial markets have been volatile and this is impacting the cost of raising funds domestically as competition for stable deposits increases,” Hirst said.

Hirst argued that the bank’s rates were still “well below” the average standard variable rate in the market.

“When setting these rates we’ve tried to carefully balance the interests of these mortgage customers, those who earn money through deposits and those who invest in our bank,” Hirst said.

LoanOld rateNew rateChange
Basic Variable (Owner Occupier)4.28%4.38%Up 0.10%
Residential Variable (Owner Occupier)4.48% - 5.38%(depending on borrowing amount)4.58% - 5.48%(depending on borrowing amount)Up 0.10%
Connect Package Variable (Owner Occupier)4.13% - 4.43%(depending on borrowing amount)4.23% - 4.53%(depending on borrowing amount)Up 0.10%
Generation Green (Owner Occupier)4.48% - 4.88%(depending on borrowing amount)4.58% - 4.98%(depending on borrowing amount)Up 0.10%
Home Equity Line of Credit (Owner Occupier)4.88% - 5.78%(depending on borrowing amount)4.98% - 5.88%(depending on borrowing amount)Up 0.10%
Low Doc (Owner Occupier)5.58%5.68%Up 0.10%
Bridging Finance (Owner Occupier)5.38%5.48%Up 0.10%
Basic Variable (Investor)4.56%4.66%Up 0.10%
Residential Variable (Investor)4.76% - 5.66%(depending on borrowing amount)4.86% - 5.76%(depending on borrowing amount)Up 0.10%
Connect Package Variable (Investor)4.41% - 4.71%(depending on borrowing amount)4.51% - 4.81%(depending on borrowing amount)Up 0.10%
Home Equity Line of Credit (Investor)5.11% - 6.01%(depending on borrowing amount)5.21% - 6.11%(depending on borrowing amount)Up 0.10%
Bridging Finance (Investor)5.66%5.76%Up 0.10%
LoanOld rateNew rateChange
Variable SmartFit (LVR <90%)3.99% (OO), 4.44% (INV)4.09% (OO), 4.54% (INV)Up 0.10%
Variable SmartFit (LVR >90%)4.39% (OO), 4.64% (INV)4.49% (OO), 4.74% (INV)Up 0.10%
Variable SmartSaver (LVR <90%)3.94% (OO), 4.39% (INV)4.04% (OO), 4.49% (INV)Up 0.10%
Variable SmartSaver (LVR >90%)4.29% (OO), 4.54% (INV)4.39% (OO), 4.64% (INV)Up 0.10%
Variable SmartDoc5.15% (OO), 5.40% (INV)5.25% (OO), 5.50% (INV)Up 0.10%
Variable SmartDoc Plus5.29% (OO), 5.54% (INV)5.39% (OO), 5.64% (INV)Up 0.10%

Compare loans below to see if you could be getting a better deal

Rates last updated February 21st, 2018
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.60%
$0
$0 p.a.
90%
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.52%
3.54%
$0
$0 p.a.
80%
A basic home loan with a competitive rate and low fees.
3.49%
4.49%
$0
$375 p.a.
90%
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.52%
3.53%
$0
$0 p.a.
80%
A competitive variable rate product with no application or valuation fees offered by a 100% online lender.
3.54%
3.58%
$0
$0 p.a.
80%
A variable rate home loan with competitive rate, redraw facility and offset account.
3.69%
4.86%
$0
$395 p.a.
90%
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.74%
3.74%
$0
$0 p.a.
80%
Pay no application fee or ongoing fees with this loan.
3.68%
3.83%
$0
$10 monthly ($120 p.a.)
80%
A low interest rate home loan that allows borrowers to borrow up to 80% of the property value.
3.69%
3.69%
$0
$0 p.a.
90%
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.64%
3.67%
$0
$0 p.a.
80%
A low rate home loan with no ongoing fees.
3.99%
4.00%
$0
$0 p.a.
80%
A low-fee variable rate investor loan with a fast online application process.
3.65%
3.66%
$0
$0 p.a.
90%
A competitive variable rate home loan with no application fee.
3.77%
3.81%
$200
$0 p.a.
95%
A basic home loan with a low interest rate and a redraw facility available.
3.69%
3.69%
$0
$0 p.a.
80%
Enjoy a low variable interest rate and no application or ongoing fees.
3.74%
3.75%
$0
$0 p.a.
80%
A special variable rate home loan with no application or ongoing fees.
3.62%
3.62%
$0
$0 p.a.
80%
A discounted, competitive variable rate loan with limited fees.
3.74%
3.74%
$0
$0 p.a.
95%
A low rate home loan with no application or ongoing fees. Free home & contents insurance for 1 year. T&Cs apply. Note that to be eligible for this loan you must be QLD resident.
3.64%
3.67%
$0
$0 p.a.
80%
A home loan with a competitive variable rate, limited fees and plenty of flexibility.
3.74%
3.74%
$0
$0 p.a.
110%
Requires a family member to act as guarantor. Discounted rate available with family pledge loans. Family pledge loans
require no LMI and no deposit. NSW, Qld and ACT only.
3.73%
3.73%
$0
$0 p.a.
80%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.64%
4.03%
$0
$395 p.a.
80%
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.78%
3.78%
$0
$0 p.a.
80%
A basic low-rate home loan that still offers some useful features.
3.99%
4.41%
$0
$395 p.a.
90%
A discounted home loan variable rate that comes with a competitive package, an eligible credit card and an offset transaction account.
4.11%
4.01%
$0
$0 p.a.
80%
Enjoy a fast application process and flexible repayment options with this fixed rate investment loan.
3.74%
3.74%
$0
$0 p.a.
90%
A competitive variable rate with a redraw facility. NSW, QLD and ACT residents only.
4.09%
4.12%
$0
$0 p.a.
95%
This loan has a high max insured LVR, making it an option for low deposit borrowers.
3.99%
4.62%
$395
$0 p.a.
80%
Fix your interest rate and pay principal and interest repayments on your investment.
4.14%
4.14%
$0
$0 p.a.
80%
An investment home loan with competitive rate and 100% offset account.
3.65%
4.84%
$0
$395 p.a.
90%
A 2 years fixed platinum package that has $0 application and a loan redraw facility.
3.88%
4.89%
$0
$395 p.a.
95%
A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.09%
4.11%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
3.89%
4.87%
$0
$0 p.a.
90%
Enjoy a low interest rate and borrow up to 90% (with LMI) of your property's value.
3.89%
5.40%
$0
$395 p.a.
95%
A package investment loan with a competitive, discounted interest rate and 0 application fees.
3.97%
4.02%
$445
$0 p.a.
90%
Get a competitive rate without features you may not use.
3.84%
4.83%
$0
$0 p.a.
80%
Get a competitive 2-year fixed rate with no application or ongoing fees.
3.97%
3.97%
$0
$0 p.a.
90%
A competitive variable rate home loan with no ongoing fees.
3.64%
3.64%
$0
$0 p.a.
70%
A low-rate basic home loan requiring a 30% deposit.
3.69%
4.00%
$0
$350 p.a.
95%
Fix your rate for 3 years and borrow up to 95% LVR.
3.94%
3.97%
$0
$0 p.a.
80%
Access the equity in your home with a competitive interest-only rate and no application fee.
4.09%
4.11%
$0
$0 p.a.
80%
A low variable rate loan with no application or ongoing fees.
4.19%
4.19%
$0
$0 p.a.
90%
Access to redraw facility and offset account without the annual fee.
3.69%
4.47%
$0
$375 p.a.
90%
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.58%
3.58%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.68%
3.69%
$0
$0 p.a.
95%
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.19%
3.89%
$0
$0 p.a.
95%
A competitive 3-year fixed rate loan with a high max insured LVR.
3.85%
4.82%
$600
$35 monthly ($420 p.a.)
90%
Low fixed rate offer from HSBC. Reverts to a discounted variable rate after the initial term.
3.64%
3.65%
$500
$0 p.a.
95%
A basic home loan with a promotional variable interest rate.
3.88%
4.88%
$0
$395 p.a.
95%
Refinance from your existing loan and get a $1,250 rebate. Lock in a discounted fixed rate with a low service fee.
3.69%
3.71%
$0
$0 p.a.
90%
A low rate variable home loan offer with no monthly fees or application fee charge.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with flexible features. You can earn 30,000 Velocity Points for every $100k you borrow (for a limited time, subject to eligibility requirements).
3.69%
3.69%
$0
$398 p.a.
70%
Enjoy a low variable rate with no application and ongoing fees.
3.87%
3.87%
$0
$10 monthly ($120 p.a.)
90%
Get a competitive interest rate for 3 years and a discounted variable rate when the fixed period ends.
3.79%
3.80%
$0
$0 p.a.
80%
A competitive rate with no ongoing monthly fees or application fees.
3.99%
4.03%
$0
$0 p.a.
95%
Enjoy a basic home loan with a high LVR and no application or ongoing fees.
3.85%
4.95%
$0
$395 p.a.
95%
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cashback available for refinancers. Conditions apply.
3.99%
4.99%
$0
$395 p.a.
95%
A package home loan with fee free extra repayments available during the fixed term.
4.39%
5.42%
$300
$10 monthly ($120 p.a.)
95%
Lock in a competitive fixed rate for 3 years.
3.59%
4.42%
$600
$0 p.a.
95%
This competitive introductory rate is a limited time offer for new owner-occupiers
3.68%
3.69%
$0
$0 p.a.
90%
Get a low variable rate along with some important basic features.

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