Aussie, Gateway Bank, ME Bank and more cut home loan rates

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on September 27, 2019
Aussie, Gateway Bank, ME Bank and more cut home loan rates

Photo by bruce mars on Unsplash

The Reserve Bank’s monthly meeting is just around the corner with a rate cut almost a certainty, but that hasn’t stopped lenders cutting rates for new customers as the home loan war heats up.

Home loan interest rates are dropping left, right and centre, thanks to the most recent RBA rate cuts back in June and July.

With an October rate cut looking more and more certain, these are likely not to be last home loan rate cuts we’ll see.

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Aussie home loan rate cuts

Aussie has slashed rates on a number of its fixed and variable home loan products, with rates as low as 2.99% p.a. (comparison rates differ, see below).

Changes to fixed rates:

  • Two-year Select Basic fixed for borrowers making principal and interest (P&I) repayments with up to 80% LVR have been cut by 9 basis points from 3.08% p.a. to 2.99% p.a. (3.38% p.a. comparison rate*)
  • Two-year Select Basic fixed for borrowers making P&I repayments with over 80% LVR have been cut by 9 basis points from 3.08% p.a. to 2.99% p.a. (3.38% p.a. comparison rate*)
  • Three-year Select Basic fixed for borrowers making P&I repayments with up to 80% LVR have been cut by 9 basis points from 3.08% p.a. to 2.99% p.a. (3.34% p.a. comparison rate*)
  • Three-year Select Basic fixed for borrowers making P&I repayments with over 80% LVR have been cut by 9 basis points from 3.08% p.a. to 2.99% p.a. (3.64% p.a. comparison rate*)
  • Two-year Select Standard fixed for borrowers making P&I repayments has been cut by 9 basis points from 3.08% p.a. to 2.99% p.a. (3.88% p.a. comparison rate*)
  • Three-year Select Standard fixed for borrowers making P&I repayments has been cut by 9 basis points from 3.08% p.a. to 2.99% p.a. (3.82% p.a. comparison rate*)

Changes to variable rates:

  • Select Basic variable for borrowers making P&I repayments with a $500k loan size and 80% LVR has been cut by 10 basis points from 3.54% p.a. to 3.44% p.a. (3.45% p.a. comparison rate*)
  • Select Standard variable for borrowers making P&I repayments with a $500k loan size and 80% LVR has been cut by 10 basis points from 3.54% p.a. to 3.44% p.a. (3.64% p.a. comparison rate*)

Gateway Bank home loan rate cuts

Gateway Bank has been busy cutting rates on a number of their fixed home loans for investors and owner-occupiers by up to 80 basis points.

Changes to investor home loans:

  • One-year Premium Investment fixed for borrowers with a $150k loan size has been cut by 70 basis points from 4.09% p.a. to 3.39% p.a. (4.21% p.a. comparison rate*)
  • One-year Premium Investment fixed for borrowers making interest-only repayments with a loan size of $150k+ has been cut by 80 basis points from 4.29% p.a. to 3.49% p.a. (4.22% p.a. comparison rate*)

Changes to owner-occupier loans:

  • Low Rate Essentials has been cut by 20 basis points from 3.39% p.a. to 3.19% p.a. (3.22% p.a. comparison rate*)
  • Low Rate Essentials with 85% LVR has been cut by 20 basis points from 3.42% p.a. to 3.22% p.a. (3.25% p.a. comparison rate*)
  • Three-year Premium Residential fixed for a $150k loan size has been cut by 40 basis points from 3.69% p.a. to 3.29% p.a. (3.87% p.a. comparison rate*)

ME Bank home loan rate cuts

The online lender announced cuts to its variable home loan offers for investors by up to 49 basis points.

The cuts for P&I and IO loans are effective from 24 September.

  • Flexible Home Loan Member Package for investors making P&I repayments with under 80% LVR has been cut by 14 basis points from 3.77% p.a. to 3.63% p.a. (4.06% p.a. comparison rate*)
  • Basic Home Loan for investors making P&I repayments with under 80% LVR has been cut by 49 basis points from 4.17% p.a. to 3.68% p.a. (3.70% p.a. comparison rate*)
  • Flexible Home Loan Member Package for investors making IO repayments has been cut by 23 basis points from 4.12% p.a. to 3.89% p.a. (4.19% p.a. comparison rate*)
  • Basic Home Loan for investors making IO repayments with under 80% LVR has been cut by 45 basis points from 4.34% p.a. to 3.89% p.a. (3.79% p.a. comparison rate*)

Who else has cut home loan rates this week?

Commonwealth Bank got in on the action earlier in the week, cutting fixed home loan interest rates by up to 90 basis points.

Owner-occupied borrowers paying principal and interest (P&I) can now get fixed rates with Commbank starting from 3.29% p.a, while interest-only (IO) borrowers can get fixed loans starting from 3.79% p.a.

But even though the cuts from the big four bank sound pretty big, the rates are still much higher than those offered by several other lenders:

Company Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
1yr Fixed Rate 3.44% 4.93% $2,229 More details
Great Rate Discount Fixed 1yr 2.79% 3.94% $1,641 More details
3yrs Fixed OO P&I 2.98% 4.39% $1,682 More details
Fixed Rate 1yr 2.98% 4.65% $1,682 More details
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
1yr Fixed Rate
3.44% 4.93% $2,229
More details
Great Rate Discount Fixed 1yr
2.79% 3.94% $1,641
More details
3yrs Fixed OO P&I
2.98% 4.39% $1,682
More details
Fixed Rate 1yr
2.98% 4.65% $1,682
More details

Base criteria of: a $400,000 loan amount, fixed, principal and interest (P&I) owner-occupier home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 26 September 2019. View disclaimer.

Leading fintech lender Loans.com.au released two new investment home loan products on Monday, the Smart Investor home loans.

The Smart Investor loans both boast an interest rate of 3.39% p.a. (3.41% comparison rate*), and have no ongoing or monthly fees.

The only difference between the two products is that one requires principal and interest repayments, the other is interest-only.

Despite this, the interest rate is actually the same for both products, making the interest-only rate one of the lowest investment rates of its kind on the market at the time of writing.

Company Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
Smart Investor Home Loan P&I 80% 3.39% 3.41% $1,772 More details
Low Rate Inv Loan w/Offset 3.40% 3.42% $1,774 More details
Achieve Var Inv P&I Special 3.49% 3.54% $1,793 More details
Inv Simplicity Plus P&I Special 3.66% 3.70% $1,850 More details
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
Smart Investor Home Loan P&I 80%
3.39% 3.41% $1,772
More details
Low Rate Inv Loan w/Offset
3.40% 3.42% $1,774
More details
Achieve Var Inv P&I Special
3.49% 3.54% $1,793
More details
Inv Simplicity Plus P&I Special
3.66% 3.70% $1,850
More details

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) investment home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. *Rates correct as at 23 September 2019. View disclaimer.


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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