Who hiked, who cut: 35 banks raise rates, 7 cut before Christmas – realestate.com.au

Homeowners have been hit as 35 lenders increased rates before Christmas – with a shock twist when seven others quietly cut their rates. See the list.

The surge in rate hikes has been driven by fixed home loans, with data from Canstar.com.au showing lenders have been pricing in higher interest rates for weeks, long before Reserve Bank Governor Michele Bullock all but ruled out further cuts.

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In the past week alone, 19 lenders have switched to fixed interest rates.

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In the past week alone, the number of lenders raising fixed rates rose from 15 to 19, adding to the pressure on households already stressed by the cost of living.

The wave of rate hikes that swept across the market between December 9 and 17 included Aussie, Australian Mutual Bank, Bank Australia, Bank First, Bank of China, Bank of Melbourne, BankSA, Great Southern Bank, Heritage Bank, ING, NAB, People’s Choice, Police Credit Union, Qudos Bank, St. George Bank, Summerland Bank, Suncorp Bank, Ubank and Westpac.

It came as a surprising competition emerged in variable lending, with seven lenders cutting back on at least one product in the past month – while only one lifted it.

The rare market gap has left borrowers struggling to figure out what their next step should be, given forecasts that the RBA will increase its cash rate target in February.

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Canstar Data Insights director Sally Tindall has warned homeowners that a competitive interest rate in the current climate should be below 5.25 per cent.

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SCROLL DOWN TO SEE THE LIST

Sally Tindall, Canstar’s director of data insights, said the year-end interest rate chaos was a clear warning sign for 2026.

“A week after Christmas, the mortgage market shows little sign of slowing down,” she told The Courier-Mail. “Fixed rates are rising thanks to economic forecasts, many of which are now predicting rate increases rather than rate cuts.”

“Canstar data shows that 35 lenders have increased at least one fixed rate in the last 30 days – a clear sign that banks have been pricing in increases for several weeks, long before the RBA governor stood up and all but ruled out the possibility of further cuts.”

Ms Tindall said while fixed loans soared, variable rates were largely holding up – and in some cases falling – due to fierce competition.

Those that cut variables this month include Aussie, Auswide Bank, Bank of China and Bank of Us. MyState Bank, P&N Bank and Unloan.

“The catch is that these cuts only apply to new customers,” she said. “If you want to take advantage of this, maybe you should consider jumping ship.”

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Reserve Bank Governor Michele Bullock has already indicated that the board will revisit the issue of interest rate hikes in 2026.

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Ms Tindall said refinancing is at a record high and will hopefully increase in the summer ahead of next year’s changes.

“Now is the time to take stock of your mortgage and war game about what higher interest rates could mean for you in 2026,” she said.

“Going into the break, know that a rate of 5.51 percent is the average for an owner-occupier, while a competitive rate really needs to be under 5.25 percent if you want any bragging rights around the barbecue.”

WHO HAS WALKED, WHO HAS BEEN CUT

FIXED PRICES – WALK (9-17 December)

Australian

Australian mutual bank

Bank Australia

Sofa first

Bank of China

Bank of Melbourne

BankSA

Great Southern Bank

Heritage bank

ING

NAB

The people’s choice

Police Credit Union

Qudos bank

St. Georgebank

Zomerlandbank

Suncorp Bank

The couch

Westpac

VARIABLE PRICES – CUT (last month)

Australian

Auswide Bank

Bank of China

Sofa from us

My State Bank

P&N bank

Lend

Source: Canstar.com.au. Based on owner and investor loans of $600,000, principal and interest and/or interest only. Excluding introductory and green loans.

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