Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Wholesale funder lifts rates as out-of-cycle hikes continue

A mortgage funder has succumbed to funding cost pressures, hiking variable mortgage rates by up to 15 basis points for both new and existing home loan customers.

NAB-owned wholesale funder Advantedge has announced that it will increase its variable mortgage rate by 15 basis points, effective for new customers from 13 March and for existing customers from 15 April.

Owner-occupier principal and interest rates with a loan-to-value ratio of up to 80 per cent will now start from 3.74 per cent.  

Like many other lenders, Advantedge has attributed its decision to “sustained funding cost pressures”.

Advantedge is the latest player in the lending market to hike its mortgage rates out-of-cycle, amid similar changes from several lenders throughout 2018 and since the turn of the year.  

Advertisement
Advertisement

AMP, MyStateNAB and its subsidiary UBankMacquarie, the Bank of QueenslandVirgin Money, and ING have all announced rate increases since the start of 2019, all citing funding cost pressures.

Conversely, some lenders have bucked the trend and dropped interest rates on their mortgage offerings, with the likes of Heritage BankTeachers Mutual Bank, and Adelaide Bank reducing rates by up to 92 basis points.

However, despite lifting its variable mortgage rates, Advantedge has also announced reductions to its fixed rate mortgage offerings.

Effective 13 March 2019, Advantedge will decrease its two-year fixed interest rates on all residential home loan products by 16 basis points, with such loans now starting from 4.21 per cent.

The change applies to owner-occupier and investor loans, with both principal and interest and interest-only repayments.

[Related: Bank announces rate hikes of up to 40bps]

Wholesale funder lifts rates as out-of-cycle hikes continue
Money and percentage
mortgagebusiness

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. ...

Following Saturday’s (21 May) federal election, here’s a recap of the housing policies we can expect to see this year. ...

The bank’s latest data suggests that mortgage fees have decreased during the last quarter, while surging over the past 12 months. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.