Macquarie Bank hikes interest rates

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Macquarie Bank has hiked interest rates by up to 0.16 per cent, following a similar move from NAB just days ago.

Owner occupier variable rate loans with principal and interest rate payments are set to increase by 0.06 per cent on 11 February for new customers.

The hike will come into effect on 22 February for existing customers.

For borrowers with a $400,000 loan with a 30-year term, this means there will be a $14 increase to the monthly repayments and an extra $4,928 in interest over the entire loan.

For those making interest-only repayments on their owner occupier variable rate loan, their interest rates will increase by 0.16 per cent.

And investment variable rate loans will also increase by 0.16 per cent for both principal and interest and interest-only loans.

The bank is also slashing the four and five year fixed rates for all new owner occupier and new investment interest-only loans by between 0.10 per cent and 0.40 per cent.

The bank did not provide its reasons for why it was hiking rates in a note shared with brokers.

However, Canstar’s group executive Steve Mickenbecker said the bank is likely feeling the margin pressure incurred through larger wholesale funding costs overseas.

He said the same pressures have has already prompted 12 other lenders to increase their variable rate home loans since the beginning of the year.

“This doesn’t necessarily act as a precursor for further movements from the other major lenders which have already moved their rates up,” Mickenbecker added.

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