Australian Military Bank marches rates by up to 55 basis points

author-avatar By 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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
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
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
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

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

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

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

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 17, 2021. 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 which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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