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Macquarie Bank raises interest rates across the board

Posted: 10 July 2018 11:21 am
News

The word Rate and a green arrow.

The lender will raise owner-occupier mortgage rates by 6 basis points and investor rates by 10.

The trend of rising mortgage interest rates continues, with Macquarie Bank joining AMP, Suncorp and Bank of Queensland to raise rates despite the Reserve Bank's inaction.

Macquarie Bank will increase its owner-occupier products by 6 basis points. Investment loans, which are usually higher, will rise by 10 basis points.

Rate rises are no joke for Aussie borrowers. Even a small rise becomes a big financial hit for people facing mortgage stress.

Here's what a 6 basis point rise adds to your repayments:

  • Example loan: Macquarie Bank Basic Home Loan – LVR ≤ 90% (Up to $750,000 Owner Occupier, P&I)
  • Original interest rate: 3.99%
  • Borrowing amount: $700,000 over 30 years
  • Original monthly repayment: $3,338
  • New interest rate: 4.05%

Your new repayment would be $3,362, which is an extra $24 a month, or $288 a year.

Recent research found that almost a million Australian households are facing mortgage stress, so these extra costs are very real.

When taking out a mortgage it's important to factor in rate rises and make sure you can handle them. But if you're worried about meeting your repayments you do have options. Talk to your lender about hardship assistance schemes and repayment holidays (a short break in your repayments).

Refinance to avoid rate rise headaches

The real trick to avoiding rising rates is simple: refinance. By comparing rates and switching to a cheaper loan you can save hundreds or even thousands of dollars in repayments.

As long as you've paid off some of your loan and have some equity in the property, then switching should be relatively simple. It's just a question of applying, getting your paperwork together and letting your new lender handle the transition with your current one.

Feeling the pain of rate rises? Switch to a lower rate and save

Data indicated here is updated regularly
$
% p.a.
Offset account
Split account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Maximum Insured LVR Amount Saved Short Description
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.59%
2.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.64%
2.66%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get a $2,000 cashback per property (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
loans.com.au Smart Home Loan - (Owner Occupier, P&I)
2.57%
2.59%
$0
$0 p.a.
80%
Get a low variable interest rate and pay 0 application or ongoing fees with this convenient online lender.
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
2.65%
2.66%
$0
$0 p.a.
80%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
2.78%
2.79%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000. Refinance to an eligible Suncorp loan and get a cashback of $2,000 or $3,000, depending on your loan amount. Other conditions apply.
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