Rate Festive Cheer’? No — Rate Festive Fear
Forget jolly jingles — this Christmas the banks are jingling another tune: higher mortgage bills. One of Australia’s big four banks, Westpac, has now hiked its fixed home loan rates for the second time in just over a month, lifting the lowest fixed rate to around 5.49%. And it’s not alone — 12 lenders in total have pushed up at least one fixed rate in the past week, with lenders like St George, Bank of Melbourne, ING, HSBC and Suncorp following suit. Courier Mail+1
The effect? Fewer bargains for borrowers and rising heartbreak for wallets. The number of lenders offering any fixed rate below 5% has collapsed from 43 to just 29. Shelves at Santa’s workshop remain stocked with cheap deals, but when it comes to home loans, the bargains have packed their bags and split. Courier Mail
📈 Bankers Predict More Pain Than Santa’s Naughty List
What’s causing this merry misery? The Reserve Bank of Australia’s cryptic warnings that rate hikes aren’t off the table for 2026 have put lenders on edge. Instead of waiting for the RBA’s next call in February, banks are pre-emptively tightening pricing — a classic case of lenders acting like they read the tea leaves before the central bank even boiled the kettle. Yahoo Finance
Westpac still whispers sweet nothings about possible rate cuts in 2026, but also admits the likelihood of a hike has risen — which is finance speak for “we’re raising rates now so you internally blame the RBA later.” Yahoo Finance
⚖️ $515K Fine: Consumer Credit Laws Still More Than Decoration
Meanwhile, in the land of regulators, the Federal Court has handed down a combined $515,000 penalty against a business lender and its loan introducer for unlicensed credit activity. Neither Green County Pty Ltd nor Max Funding ever held an Australian credit licence, yet they were doing what some lenders do every day: playing fast and loose with credit laws. ASIC
The court found these firms issued multiple loans without proper licence or inquiries — even advancing money to a borrower repeatedly despite obvious red flags (including a gambling addiction). ASIC says this breach meant the borrowers missed out on crucial consumer protections. ASIC
👴 Reverse Mortgages: Silver Hair, Gold Fees?
The Finance Brokers Association of Australia (FBAA) is pushing industry leaders and policymakers to promote reverse mortgages and equity-release products as a solution to Australia’s retirement savings shortfall among seniors. Mortgage Professional Australia
Supporters argue that older Australians sit on enormous housing wealth but lack liquid retirement income — suggesting reverse mortgages could fill that gap without forcing downsizing. Critics, however, will point out there’s a vast difference between unlocking equity and trapping people in high-cost, opaque lending products. Only time will tell whether this becomes mainstream policy or just another way for banks to extract late-life profits. Mortgage Professional Australia
💼 Former ANZ CEO Sues ANZ: Irony Not Lost
In an epic irony only high finance can produce, former ANZ chief Shayne Elliott has sued ANZ Bank after losing $13.5 million in bonus payments post-retirement. Elliott claims the bank breached his contract when it clawed back his long-term variable remuneration to zero. ABC
The bank says it will vigorously defend the case, noting regulatory standards require remuneration “designed to encourage prudent risk management.” Whether the courts agree is a separate question — one that could embarrass the bank’s governance optics even more than its recent run-ins with ASIC did. ABC
