The bank's new rate on its Breakfree Standard variable loan is 2.99% p.a. (3.42% p.a. comparison rate*) for owner-occupiers making principal and interest (P&I) repayments with 80% LVR. 

But the catch is that only new customers will be eligible for the lower rate, meaning existing borrowers will miss out. 

Related: What is a package home loan?

ANZ also reduced rates for owner-occupiers making interest-only (IO) repayments with 80% LVR by 90 basis points, taking the new rate to 3.54% p.a. (3.58% p.a. comparison rate*).

Investors won't miss out either: the bank reduced rates for investors making P&I repayments with 80% LVR on the Breakfree package by 90 basis points to 3.59% p.a. (4.00% p.a. comparison rate*). 

Investors making IO repayments with a 80% LVR also received the 90 basis point cut to 3.84% p.a. (4.06% p.a. comparison rate*). 

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

This marks the first variable rate cut by a major bank since September last year, with cuts to fixed rates having been the focus for banks lately.

Last week Bankwest, Newcastle Permanent, and Greater Bank all raised rates on fixed home loan products, while Adelaide Bank recently hiked some of its variable interest rates by up to 15 basis points.

That could be a sign that banks have forecast their wholesale funding costs will rise in the coming months and years and that interest rates could start rising sooner than anticipated, despite Reserve Bank governor Dr Philip Lowe repeatedly stating the official cash rate will remain at 0.10% until at least 2024.

Read more: Why are home loan rates climbing when the cash rate is still 0.10%?

What other lenders cut home loan interest rates this week?

AMP Bank

  • Professional Package Investment Fixed P&I 2 years with 80% LVR: Cut by 25 basis points to 2.24% p.a. (3.72% p.a. comparison rate*)
  • Professional Package Investment Fixed P&I 2 years with 90% LVR and LMI: Cut by 25 basis points to 2.34% p.a. (3.74% p.a. comparison rate*)
  • Investment Basic Fixed P&I 2 years: Cut by 25 basis points to 2.44% p.a. (3.15% p.a. comparison rate*)
  • Professional Package Investment Fixed IO 2 years: Cut by 24 basis points to 2.44% p.a. (3.34% p.a. comparison rate*)
  • Investment Basic Fixed IO 2 years: Cut by 24 basis points to 2.54 p.a. (3.17% p.a. comparison rate*)

BCU

  • Residential Fixed P&I 1 year: Cut by 31 basis points to 1.67% p.a. (3.84% p.a. comparison rate*)
  • Investment Fixed P&I 1 year: Cut by 31 basis points to 1.87% p.a. (4.00% p.a. comparison rate*)
  • Investment Fixed IO 1 year: Cut by 31 basis points to 1.97% p.a. (4.01% p.a. comparison rate*)
  • Residential Fixed P&I 2 years: Cut by 20 basis points to 1.78% p.a. (3.66% p.a. comparison rate*)
  • Investment Fixed P&I 2 years: Cut by 20 basis points to 1.98% p.a. (3.82% p.a. comparison rate*)

Photo by pear285 via Flickr



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