Australian Military Bank marches rates by up to 55 basis points

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on June 26, 2020
Australian Military Bank marches rates by up to 55 basis points

Photo by Troy Mortier on Unsplash

Yesterday, Australian Military Bank raised interest rates on primarily investment home loans by up to 55 basis points.

The biggest rate rises were to the bank's investment 'RateSaver' home loan products, hiked by 55 basis points.

Some examples are below:

  • Variable Investment RateSaver 80% 150k: 55 basis point rise 3.95% p.a. (3.99% p.a. comparison rate*)
  • Fixed Investment 3 Years P&I: 50 basis point rise to 3.59% p.a. (4.86% p.a. comparison rate*)
  • Owner Occupier Construction Loan 80% 150k: 43 basis point rise to 3.95% p.a. (3.99% p.a. comparison rate*)
  • Owner Occupier Fixed 2 Years P&I: 10 basis point rise to 2.79% p.a. (4.38% p.a. comparison rate*)

Overall, it appears up to 80 individual home loan products, with a focus on construction and investment loans, were raised by between four and 55 basis points. 

Although it was initially created to support military families, the bank's products are available to anyone provided they sign up as it's a customer-owned bank.

Bumps in home loan interest rates in recent times aren't new, with ING, Newcastle PermanentME Bank and ANZ all lenders to hike some interest rates in the past two months, but so far in our research, Australian Military Bank's are some of the widest and biggest.

Yesterday, ING also cut some variable home loans by 19 basis points.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates 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
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 June 28, 2022. View disclaimer.

Lenders introduce 'special offers'

In the past week, Bank of Queensland, Newcastle Permanent and Freedom Lend cut a suite of home loans as 'special offers' or discounted rates.

Keep in mind discounted rates or promotional rates can end at any time. Details are below.

BOQ

Earlier in the week, Bank of Queensland cut a few investment home loan products by up to 35 basis points, as a 'discount' rate.

The cuts were to fixed investment loans with a maximum LVR of 80%.

  • Investment Fixed P&I 2 Years: 20 basis point cut to 2.69% p.a. (3.74% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years: 15 basis point cut to 2.74% p.a. (3.67% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years: 30 basis point cut to 2.99% p.a. (3.62% p.a. comparison rate*)
  • Investment Fixed IO 2 Years: 25 basis point cut to 2.94% p.a. (3.78% p.a. comparison rate*)
  • Investment Fixed IO 3 Years: 30 basis point cut to 2.99% p.a. (3.73% p.a. comparison rate*)
  • Investment Fixed IO 5 Years: 35 basis point cut to 3.24% p.a. (3.72% p.a. comparison rate*)

Newcastle Permanent

After raising some home loan rates a few weeks ago, Newcastle Permanent cut interest rates on the 'Real Deal' product line as a special offer by up to 22 basis points.

  • Real Deal P&I 80% 150k+: 22 basis point cut to 2.72% p.a. (2.76% p.a. comparison rate*)
  • Real Deal P&I 95%: 12 basis point cut to 3.09% p.a. (3.13% p.a. comparison rate*)
  • Real Deal IO 80% 150k+: 22 basis point cut to 3.12% p.a. (2.90% p.a. comparison rate*)

A couple of home loans for investors were also cut, including:

  • Real Deal Investment P&I 80% 150k+: 10 basis point cut to 3.11% p.a. (3.15% p.a. comparison rate*)
  • Real Deal Investment IO 80% 150k+: 10 basis point cut to 3.11% p.a. (3.14% p.a. comparison rate*)

Freedom Lend

Yesterday, Freedom Lend cut two products by up to 12 basis points as special offers. Details are:

  • Freedom Variable P&I 80%: 10 basis point cut to 2.39% p.a. (2.39% p.a. comparison rate*)
  • Freedom Variable P&I 70%: 12 basis point cut to 2.17% p.a. (2.17% p.a. comparison rate*)

With these cuts, these rates are now some of the lowest we have seen in the variable, owner-occupied market, however borrowers must submit a loan application before 31 July.


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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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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