The Rising Tide of Home Loan Rates: What You Need to Know

In a significant move impacting homeowners and investors alike, several Australian banks have announced increases in their home loan rates. UBank, ME Bank, Macquarie, and Liberty are adjusting their rates, reflecting a broader trend in the financial sector. Here’s a closer look at what these changes mean for you.

UBank’s Rate Adjustment

Effective 16th November 2023, UBank is revising interest rates for both new and existing customers across various home loan products. The changes are as follows:

  • Flex Home Loan (Owner Occupier, Principal and Interest): Rates are increasing by approximately 0.25% across different LVRs.
  • Investor Loans (Principal and Interest and Interest Only): Similar increases are being implemented.
  • Fixed Rates: There are notable increases in fixed rates for both owner-occupier and investor loans, with terms ranging from 1 to 5 years.

UBank also offers a rate lock option for a $500 fee, allowing clients to lock in current rates before the new rates take effect.

ME Bank, Macquarie, and Liberty Rate Increases

Following suit, ME Bank and Macquarie have both announced a rate increase of 0.25%. Liberty is also increasing its variable rate home loan accounts by 0.25%, effective from 14 November 2023. These changes align with the broader market trends and are crucial for borrowers to consider in their financial planning.

Impact on Borrowers

These rate increases mean higher monthly repayments for those with variable-rate loans and could affect the overall cost of loans for new borrowers. Fixed-rate borrowers have some insulation from these changes until their fixed term ends.

Navigating the Changes

For those considering a new home loan or currently repaying one, it’s essential to review your financial situation in light of these changes. Exploring options like rate lock, refinancing, or even switching loan types could be beneficial. Consulting with a financial advisor is also advisable to navigate these changes effectively.


The increase in home loan rates by UBank, ME Bank, Macquarie, and Liberty is a reminder of the dynamic nature of the financial markets. Staying informed and proactive in managing your mortgage can help mitigate the impact of these changes.