Macquarie Bank will hike a range of fixed rate home loans ahead of the Reserve Bank’s widely expected official rise next week.
The bank notified mortgage brokers on Monday that it would be boosting the cost of most one year fixed rate offers for owner occupiers and investors from February 1.
According to a new home loan rate card distributed to brokers, the pricing of one year fixed rate mortgages for owner occupiers paying principal and interest will increase by as much as 36 basis points to 5.25 per cent.
This new rate applies to borrowers with loan to value ratios between 60.01 per cent and 70 per cent.
Owner occupiers with LVRs above 70 per cent will pay an additional 34 bps on a principal and interest 12-month fixed mortgage from Wednesday.
The pricing on the 70 per cent LVR offer for owner occupiers will rise to 5.25 per cent from 4.89 per cent.
New investment borrowers will also be asked to absorb big rate movements exceeding 30 bps on 12-month fixed P&I mortgages.
Investors with LVRs between 60.01 per cent and 70 per cent will pay annual interest of 5.45 per cent, up from 5.09 per cent.
The rate for investment borrowers on LVRs up to 80 per cent will increase 36 bps to 5.55 per cent.
One year fixed rates are also increasing for investors taking out interest-only mortgages with Macquarie.
For investors with loan to value ratios between 60.01 per cent and 70 per cent, the interest-only rate will rise 36 bps to 5.65 per cent.
The rate for borrowers on LVRs up to 80 per cent rises to 5.95 per cent from 5.59 per cent.
According to the new rate card, Macquarie has not repriced any variable rate mortgage products since the RBA’s last official move in December.