Big banks raise investor fixed rates

By Gerv Tacadena | 05 Nov 2021

One big bank is expecting the RBA to raise the cash rate by as early as 2022.

Two big banks have increased their investor fixed rates following the RBA's updated forecast on the possible cash-rate hike.

Based on its current economic forecasts, the RBA is expecting to meet its inflationary and unemployment targets are met by 2023, which would trigger a rate hike.

Following the announcement, CommBank and Westpac have increased their investor fixed rates by as much as 30bps.

Prior to the RBA's recent announcement, several lenders have already adjusted their long-term fixed rates.

CommBank

CommBank is projecting the central bank to increase the cash rate by as early as November this year.

In response to the recent RBA announcement, it increased both its short-term and long-term fixed rates under its standard and package investor products.

Here are some of the changes:

  • Investment Fixed P&I 1 yr - up by 20bps to 2.84% p.a (5.05% p.a. comparison rate)
  • Investment Fixed P&I 2 yr - up by 30bps to 2.94% p.a (4.87% p.a. comparison rate)
  • Investment Fixed P&I 3 yrs - up by 30bps to 2.84% p.a (4.67% p.a. comparison rate)
  • Investment Fixed P&I 5 yrs - up by 10bps to 3.34% p.a (4.54% p.a. comparison rate)
  • Wealth Package Investment Fixed P&I 1 yr 150k+ - up 20bps to 2.69% p.a. (4.67% p.a. comparison rate)
  • Wealth Package Investment Fixed P&I 2 yr 150k+ - up 30bps to 2.79% p.a. (4.54% p.a. comparison rate)
  • Wealth Package Investment Fixed P&I 3 yr 150k+ - up 30bps to 2.69% p.a. (4.38% p.a. comparison rate)
  • Wealth Package Investment Fixed P&I 5 yr 150k+ - up 10bps to 3.19% p.a. (4.34% p.a. comparison rate)

Westpac

For its part, Westpac has maintained its stance that the RBA will only be raising rates by the first quarter of 2023.

Still, it has already raised its investor fixed rates, with the three-year term getting the biggest increase of 20bps.

  • Investment Fixed IO 3 yrs 70% - up by 20bps to 2.89% p.a. (4.79% p.a. comparison rate)
  • Investment Fixed IO 3 yrs 80% - up by 20bps to 2.99% p.a. (4.88% p.a. comparison rate)
  • Investment Fixed P&I 3 yrs 70% - up by 20bps to 2.79% p.a. (4.58% p.a. comparison rate)
  • Investment Fixed P&I 3 yrs 80% - up by 20bps to 2.89% p.a. (4.67% p.a. comparison rate)
  • Premier Advantage Investment Fixed P&I 3 yrs 70% - up by 20bps to 2.59% p.a. (3.85% p.a. comparison rate)
  • Premier Advantage Investment Fixed P&I 3 yrs 80% - up by 20bps to 2.69% p.a. (3.94% p.a. comparison rate)

Westpac also increased its four- and five-year rates by 10bps.

ANZ and NAB also made some changes in their investor fixed rates over the past few weeks. Here are some of the changes:

ANZ

ANZ also increased its three-year fixed rate for investors, which is now 25bps higher.

  • Investment Fixed 3 yrs 80-90% - 2.89% p.a. (4.49% p.a. comparison rate)
  • Investment Fixed IO 3 yrs ≤80% - 3.04% p.a. (4.50% p.a. comparison rate)

However, it lowered its one-year investor fixed rate by 15bps to 2.54% p.a. (4.81% p.a. comparison rate)

NAB

NAB followed the current trend in fixed rates, raising rates for longer terms while cutting those for one-year term.

  • Choice Package Inv Tailored Fixed - P&I 1 yr 150k+ - down by 15bps to 2.39% p.a. (4.71% p.a. comparison rate)
  • Choice Package Inv Tailored Fixed - P&I 3 yrs 150k+ - up by 10bps to 2.54% p.a. (4.40% p.a. comparison rate)
  • Choice Package Inv Tailored Fixed - P&I 4 yrs 150k+ - up by 5bps to 2.99% p.a. (4.40% p.a. comparison rate)
  • Choice Package Inv Tailored Fixed - P&I 5 yrs 150k+ - up by 15bps to 3.09% p.a. (4.33% p.a. comparison rate)

Photo by Iyan Kurnia on Unsplash.

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