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 Permanent, ME 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.
Smart Booster Home Loan
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
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.
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*)
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*)
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.
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): Credit Union Australia, 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.
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.
- Rising inequality mires economic recovery: Oxfam
- CommBank offers up to $760 cashback for healthy customers
- Car loan vs personal loan: Which is right for you?
- 10 popular mobile apps for budgeting and saving
- Fresh calls for universal pension after talk of new 'death tax'