The direction of fixed rate changes has switched with variable rates likely to follow suit soon, potentially pointing to the bottom of the rates cycle, according to a recent report.
The Mozo Banking Roundup for November 2016 pointed to “a distinct change of direction” during the month with fixed rate increases “significantly” outnumbering cuts.
The report highlighted that a total of 19 lenders increased fixed rates during the month, with the largest number applying to three-year rates, and at least one for one-year rates.
It also underscored the fact that Westpac and the St.George group increased some of their fixed rates, particularly after being a previous rate leader for its four- and five-year terms.
The comparison website highlighted key changes:
• Greater Bank’s best in market rate of 3.74 per cent for four or five years has gone, with three- to five-year fixed rates increased between 11bp and 35bp.
• ING DIRECT increased fixed rates for all terms, by between 10bp and 40bp.
• Fixed rates for the St.George group were increased, by 24bp for two and three years, and by 54bp for five years; investor rates had an additional 6bp increase.
• Westpac’s Flexi First Option rate was increased from 3.89 per cent for three years then 4.29 per cent to 3.99 per cent for three years then 4.49 per cent. The bank’s $1,250 cashback for refinances offer ended. Westpac increased fixed rates too, matching the St.George group changes.
• NAB’s subsidiary UBank has announced an increase of 10bp, effective from this Friday.