A big week for customer-owned banking home loan rate movements

author-avatar By on July 09, 2021
A big week for customer-owned banking home loan rate movements

This week was a busy week for rate movements in the customer-owned banking space, with People's Choice Credit Union increasing a home loan by 70 basis points.

People's Choice Credit Union increased interest rates on its packaged three-year fixed interest-only (IO) home loan for owner occupiers by 70 basis points.

The rate was increased to 2.79% p.a. (3.75% p.a. comparison rate*) for borrowers with a maximum loan-to-value ratio (LVR) of 80%.

The equivalent 95% LVR loan was also increased by 70 basis points to 2.94% p.a. (3.90% p.a. comparison rate*).

A number of other People's Choice home loans were also increased by between 5 and 55 basis points, however some were decreased by up to 20 basis points.

For example, the packaged two year fixed loan for owner-occupiers paying principal & interest (P&I) with a maximum LVR of 80% was cut by 20 basis points to 1.89% p.a. (3.10% p.a. comparison rate*).

Regional Australia Bank also increased home loan rates by up to 25 basis points.

The 'Premiership Advantage' four-year fixed P&I loan for owner occupiers was increased to 2.39% p.a. (3.19% p.a. comparison rate*). 

A wide array of other home loans were also increased by between 10 and 25 basis points.

Auswide Bank increased a number of home loan rates by 10 basis points.

For example, the 'Basic' variable loan for owner occupiers between 75% and 90% LVR was increased to 2.59% p.a. (2.61% p.a. comparison rate*).

Various other 'Freedom Package' loans were also increased by 10 basis points.

This comes as cheap funding from the Reserve Bank - the Term Funding Facility - drew to a close on 30 June.

The Reserve Bank also left its cash rate unchanged at 0.10% on Tuesday.

So, where are the cuts coming from?

Greater Bank decreased its 'Great Rate' variable P&I 90% home loan by 10 basis points, now down to 2.49% p.a. (2.50% p.a. comparison rate*).

Great Southern Bank, formerly CUA, decreased interest rates on two owner occupier home loans:

  • Offset Variable 80%: 10 basis point cut to 2.54% p.a. (2.59% p.a. comparison rate*)
  • Fixed P&I 2 Years: 20 basis point cut to 1.89% p.a. (4.04% p.a. comparison rate*)

IMB also decreased rates on some home loans, including the one-year fixed investment loan paying P&I, which was cut by 40 basis points down to 2.59% p.a. (3.54% p.a. comparison rate*).

That said, IMB also increased rates on a few home loans by up to 20 basis points, namely four and five-year fixed loans.


Photo by Ivan Solorzano on Unsplash

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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