ANZ, NAB, Bendigo, ING cut home loan rates below 3%

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on March 13, 2020
ANZ, NAB, Bendigo, ING cut home loan rates below 3%

Photo by David Libeert on Unsplash

Banks such as NAB, ANZ, Bendigo Bank and ING have cut numerous fixed and variable home loan rates to below 3.00% p.a. in the wake of the most recent Reserve Bank interest rate cut.

With four cuts to the official cash rate under our belt, interest rates on home loans have never been this low, and it could be a great time to compare and switch.

The big four banks surprised many by passing on the full rate cut almost immediately, and now a few of them are offering interest rates below 3.00% p.a. on a select few fixed and variable home loan products.

Smaller lenders are spreading the love to fixed home loan rates as well, with one starting from as low as 2.49% p.a. We've summarised many of these changes below.

Thinking about refinancing to a low-rate, variable owner-occupier home loan? The table below displays some of the lowest-rate variable home loans currently on the market for owner occupiers:

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO APPLICATION FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO APPLICATION FEES

Yard Home Loan (Principal and Interest) (Special) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
UNLIMITED EXTRA REPAYMENTS
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

    Variable
    More details
    EASY DIGITAL APPLICATION
    EASY DIGITAL APPLICATION

    Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

      Variable
      More details
      $0 APPLICATION FEE
      $0 APPLICATION FEE

      Budget Home Loan (Principal and Interest) (LVR < 80%)

        Variable
        More details
        100% FULL OFFSET ACCOUNT
        100% FULL OFFSET ACCOUNT

        Offset Package Home Loan (Principal and Interest) (LVR < 60%)

          Variable
          More details
          LIMITED TIME OFFER
          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services
          LIMITED TIME OFFER

          Smart Booster Home Loan Discounted Variable - 1yr

          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 18, 2022. View disclaimer.

          ANZ home loan rate cuts

          Big four bank ANZ has swung the axe across a number of its fixed and variable home loan products by up to 35 basis points, but there's one in particular worth mentioning.

          Borrowers with a Simplicity Plus home loan making principal and interest (P&I) repayments and an LVR (loan-to-value ratio) of up to 80% will now enjoy a low 2.87% p.a. rate (2.91% p.a. comparison rate*).

          NAB home loan rate cuts

          First home buyers with a big deposit will be happy to hear that NAB has cut rates too.

          The Choice Package First Home Buyer Special 2 years for borrowers with a loan size of $150k+ has been cut by nine basis points to 2.79% p.a. (4.12% p.a. comparison rate*).

          NAB has also made cuts to a few of its fixed home loan products:

          Tailored Fixed

          • Tailored fixed P&I two years has been cut by nine basis points to 2.99% p.a. (4.38% p.a. comparison rate*)
          • Tailored fixed P&I three years has been cut by nine basis points to 2.99% p.a. (4.25% p.a. comparison rate*)

          Choice Package 

          • Choice Package Tailored Fixed P&I one year 150K+ has been cut by two basis points to 2.99% p.a. (4.24% p.a. comparison rate*)
          • Choice Package Tailored Fixed P&I two years $150k+ has been cut by nine basis points to 2.89% p.a. (4.14% p.a. comparison rate*)
          • Choice Package Tailored Fixed P&I three years $150k+ has been cut by two basis points to 2.99% p.a. (4.12% p.a. comparison rate*)
          • Choice Package Tailored Fixed P&I four years $150k+ has been cut by two basis points to 2.99% p.a. (4.02% p.a. comparison rate*)
          • Choice Package Tailored Fixed P&I five years $150k+ has been cut by two basis points to 2.99% p.a. (3.95% p.a. comparison rate*)

          Bendigo Bank home loan rate cuts

          It's been a busy week for Bendigo Bank, what with a rebranding and now facing the prospect of abandoning its $50 million capital raising following a sharp slide in the company's stock price amid a bloodbath on the ASX 200.

          All of this hasn't stopped Bendigo from cutting home loan rates though, dropping by as much as 60 basis points in the last week. 

          Basic Fixed Owner Occupier

          • Basic Fixed Owner Occupied P&I one year has been cut by 60 basis points to 2.99% p.a. (3.41% p.a. comparison rate*)
          • Basic Fixed Owner Occupied P&I two years has been cut by 20 basis points to 2.79% p.a. (3.35% p.a. comparison rate*)
          • Basic Fixed Owner Occupied P&I three years has been cut by 40 basis points to 2.79% p.a. (3.32% p.a. comparison rate*)

          ING home loan rate cuts

          ING now has a number of home loan interest rates starting with a '2' for borrowers with fixed home loans.

          Orange Advantage Residential

          • Orange Advantage Residential Fixed one yr 150k+ has been cut by 25 basis points to 2.64% p.a. (4.22% p.a. comparison rate*)
          • Orange Advantage Residential Fixed two yrs 150k+ has been cut by 30 basis points to 2.59% p.a. (4.06% p.a. comparison rate*)
          • Orange Advantage Residential Fixed three yrs 150k+ has been cut by 35 basis points to 2.49% p.a. (3.89 p.a. comparison rate*)
          • Orange Advantage Residential Fixed four yrs 150k+ has been cut by 25 basis points to 2.74% p.a. (3.84 p.a. comparison rate*)
          • Orange Advantage Residential Fixed five yrs 150k+ has been cut by 25 basis points to 2.74% p.a. (3.73 p.a. comparison rate*)

          Residential Fixed

          • Residential Fixed one year has been cut to 2.74% p.a. (4.22% p.a. comparison rate*)
          • Residential Fixed two years has been cut to 2.69% p.a. (4.08% p.a. comparison rate*)
          • Residential Fixed three years has been cut to 2.59% p.a. (3.92 p.a. comparison rate*)
          • Residential Fixed four years has been cut to 2.84% p.a. (3.87 p.a. comparison rate*)
          • Residential Fixed five years has been cut to 2.84% p.a. (3.77 p.a. comparison rate*)

          Investment Fixed P&I

          • Investment Fixed P&I one year has been cut to 2.89% p.a. (4.84% p.a. comparison rate*)
          • Investment Fixed P&I two yrs has been cut to 2.84% p.a. (4.64% p.a. comparison rate*)
          • Investment Fixed P&I three yrs has been cut to 2.74% p.a. (4.44% p.a. comparison rate*)
          • Investment Fixed P&I four yrs has been cut to 2.99% p.a. (4.36% p.a. comparison rate*)
          • Investment Fixed P&I five yrs has been cut to 2.99% p.a. (4.22% p.a. comparison rate*)

          Investment Fixed IO

          • Investment Fixed IO two yrs has been cut to 2.99% p.a. (5.07% p.a. comparison rate*)
          • Investment Fixed IO three yrs has been cut to 2.89% p.a. (4.91% p.a. comparison rate*)

          AMP home loan rate cuts

          AMP has slashed rates by as much as 138 basis points in the last week for three-year fixed home loans. 

          Professional Package Residential Fixed

          • Professional Package Residential Fixed P&I three yrs has been cut by 64 basis points to 2.49% p.a. (4.02% p.a. comparison rate*)
          • Professional Package Residential Fixed IO three yrs has been cut by 138 basis points to 2.95% p.a. (4.12% p.a. comparison rate*)

          Professional Package Investment Fixed

          • Professional Package Investment Fixed P&I three yrs has been cut by 57 basis points to 2.85% p.a. (4.58% p.a. comparison rate*)
          • Professional Package Investment Fixed IO three yrs has been cut by 65 basis points to 2.99% p.a. 4.61% p.a. comparison rate*)

          Should I fix my home loan?

          To fix or not to fix? You may be asking yourself that with all these rate cuts making fixed home loans look like an increasingly attractive proposition.

          But there are a few things to consider when choosing between a fixed or a variable home loan.

          The biggest benefit of a fixed home loan is cash flow certainty. If you're the type of person who likes the certainty of knowing what your rates are and what your repayments will be over the next few years, fixing your rate could be an option worth considering.

          Similarly, if you're on a tight budget and are worried about how you would cope in the event rates were to go up again, fixing your loan could be worth it.

          But fixing your rate can also be a bit of a gamble. If the Reserve Bank decides to cut interest rates again in April, lenders may follow by cutting their home loan rates even further - which means you've already locked yourself in to a higher rate. 

          But whichever way you split it, most home loan interest rates are still the lowest they've ever been (remember when 19% interest rates were a thing?)


          Disclaimers

          The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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          author-avatar
          Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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