While the majority of mortgage lenders responded to the increase in the cash rate by hiking their variable rates by 25 bps, a few outliers have gone for broke.
Canstar reported that in the week to May 16, Bank Australia increased its Basic Home Loan variable rate by 41 bps and Australian Unity Bank increased its discount variable rate by 40 bps.
MOVE Bank has gone against the trend, cutting the rate on its Straightforward Home Loan by 5 bps for owner occupiers and investors.
Overall, 22 lenders increased variable rates during the week by an average of 26 bps. The average variable interest rate for owner occupiers paying principal and interest is now 3.05 per cent and the lowest variable rate in the market is 1.79 per cent.
Fixed rates continue to rise – and by much more than variable rates. Canstar said 10 lenders increased fixed rates by an average of 63 bps.