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Commonwealth Bank and ANZ hike fixed rates: ‘Nearing the peak’

·Personal Finance Editor
·2-min read
A composite image of the Commonwealth Bank logo on the exterior of a Commonwealth Bank branch and the ANZ logo on the exterior of an ANZ branch.
Commonwealth Bank and ANZ have hiked fixed rates. (Source: Getty)

Commonwealth Bank (CBA) and ANZ have hiked fixed home loan rates for owner-occupiers and investors.

CBA hiked rates in every loan term by up to 0.80 per cent. As a result, CBA no longer has a fixed rate under 3 per cent.

ANZ’s hikes were also largely across the board for both owner-occupiers and investors. The largest hike was 0.70 per cent.

A chart showing the newest round of fixed rate changes at CBA.
(Source: RateCity)
A chart showing the newest round of fixed rate changes at ANZ.
(Source: RateCity) research director Sally Tindall said the hikes from CBA and ANZ came as no surprise after their big bank competitors made similar moves recently.

“As a result, none of the big four banks now offer a fixed rate under 3 per cent, with the vast majority of owner-occupier rates starting with a ‘4’ or ‘5’,” she said.

“After months of fixed-rate hikes, it’s possible some of the longer-term fixed rates could be nearing the peak.”

Tindall said the Big Four banks’ lowest 3-year fixed rates were now, on average, 2.57 percentage points higher than their lowest variable.

“[RBA] governor [Philip] Lowe has indicated the neutral cash rate could be around 2.5 per cent,” Tindall said.

With this in mind, the hikes for 3-year fixed rates may be running out of steam, however, cost of fixed-rate funding pressures could still push these higher.

“We expect 1- and 2-year fixed rates will keep on rising as the cash rate hikes unfold.”

Tindall said if you looked beyond the Big Four banks, there were still some competitive fixed-rate options.

“Anyone who wants to know with 100 per cent certainty if fixing will end up being cheaper probably needs access to a crystal ball,” she said.

“Not even the RBA can say with confidence exactly how fast and how high the cash rate will go.

“Before you fix, think about whether it suits your finances. For anyone wanting to hedge their bets, a split loan is one way to have a foot in both camps.”

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