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.
Stay up to date with the latest rate changes
SIGN UPAussie 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.
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Denise Raward
Brooke Cooper
Jacob Cocciolone
Emma Duffy
