CBA has hiked its 3 and 4-year fixed interest rates

This follows hikes of 0.20 per cent by CBA in March to its 4 and 5-year fixed rates in a further sign that Australia may soon see the end of ultra-low fixed rates

CBA has hiked its 3 and 4-year fixed interest rates
CBA has hiked its 3 and 4-year fixed interest rates

CBA has hiked its 3-year fixed rate for owner-occupiers in a further sign that Australia may soon see the end of ultra-low fixed rates.

Australia’s largest bank has increased both its 3 and 4-year fixed rates for owner-occupiers paying principal and interest by 0.05 per cent, as well as increasing some interest-only loans by 0.10 per cent.

This follows hikes of 0.20 per cent by CBA in March to its 4- and 5- year fixed rates. CBA now only has one rate under 2 per cent – fixed for 2-years.

CBA home loan changes for owner-occupiers paying principal and interest:

  • 3-year fixed rates have been hiked from 2.14% to 2.19%, an increase of 0.05%

  • 4-year fixed rates have been hiked from 2.19% to 2.24%, an increase of 0.05%

RateCity.com.au research director, Sally Tindall, said CBA has become the first major lender to increase its 3-year fixed rate from the bank’s record low.

“Today’s rate hikes might be small, but they point to a fixed rate market that’s starting to rise,” she said.

“When CBA hiked its four-year rate in March, a flurry of lenders followed in its wake. We expect the same thing will happen with three-year rates in coming months.

CBA has hiked its 3 and 4-year fixed interest rates

“Banks are anticipating a rise in the cost of funding over the next few years, with the next cash rate hike expected in 2024, if not earlier, and the end of the RBA’s term funding facility in just over one month.

“The funding, which offers banks cheap money fixed for three years, has helped lenders offer record low rates to its customers. When the funding wraps up, many banks are likely to recalibrate their rates,” she said.

Jordan Fidler

Jordan Fidler

Jordan is a journalist at Urban.com.au. His focus is shining a spotlight on some of Australia's best apartment developments and their features

Tags: 
Cba Big Four Rate Hikes Interest Rates

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?