Australian Unity, MyState Bank and QBANK slash fixed and variable rates

author-avatar By on November 15,2019
Australian Unity, MyState Bank and QBANK slash fixed and variable rates

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Australian Unity, My State Bank and QBANK have all made cuts to their home loan interest rates this week.

With interest rates on home loans now as low as 2.69% (at the time of writing), the pressure is on lenders to drop their rates.

Australian Unity, My State Bank and QBANK have done just that, cutting rates on a number of their home loan products.

One lender has dropped their rates by as much as 80 basis points.

Looking for a low variable rate home loan? The table below displays owner-occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks.

Provider Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
Purchase or Refi, P&I 80% Smart Home Loan 2.88% 2.90% $1,660 More details
Discount Variable 80% 3.07% 3.12% $1,702 More details
Base Variable Rate Special P&I 3.20% 3.20% $1,730 More details
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
Purchase or Refi, P&I 80% Smart Home Loan
2.88% 2.90% $1,660
More details
Discount Variable 80%
3.07% 3.12% $1,702
More details
Base Variable Rate Special P&I
3.20% 3.20% $1,730
More details

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%. 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 2 December 2019. View disclaimer.

Australian Unity rate cuts

The Australian mutual company has reduced some of its rates by up to 10 basis points, effective from 13 November for new customers on fixed-rate loans.

  • One-year fixed Health Wealth Happiness Package for borrowers on principal and interest (P&I) repayments has been cut by 5 basis points to 2.94% p.a. (3.54% p.a. comparison rate*)
  • Three-year fixed Health Wealth Happiness Package for borrowers on principal and interest (P&I) repayments has been cut by 5 basis points to 2.94% p.a. (3.51% p.a. comparison rate*)
  • Five-year fixed Health Wealth Happiness Package for borrowers on principal and interest (P&I) repayments has been cut by 10 basis points to 3.09% p.a. (3.54% p.a. comparison rate*)
  • One-year fixed Health Wealth Happiness for borrowers on principal and interest (P&I) repayments has been cut by 5 basis points to 3.09% p.a. (3.32% p.a. comparison rate*)
  • Three-year fixed Health Wealth Happiness for borrowers on principal and interest (P&I) repayments has been cut by 5 basis points to 3.09% p.a. (3.28% p.a. comparison rate*)
  • Five-year fixed Health Wealth Happiness for borrowers on principal and interest (P&I) repayments has been cut by 10 basis points to 3.24% p.a. (3.31% p.a. comparison rate*)

MyState Bank rate cuts

The Tasmanian-based lender has made some pretty chunky cuts, reducing rates by up to 80 basis points.

The rate cuts apply to fixed-rate loans for investors and owner-occupiers, effective from 13 November.

Rate cuts for owner-occupiers:

  • One-year Residential fixed for borrowers with an LVR of 80% has been cut by 40 basis points to 3.39% p.a. (4.71% p.a comparison rate*)
  • Two-year Residential fixed for borrowers with an LVR of 80% has been cut by 40 basis points to 3.19% p.a. (4.53% p.a comparison rate*)
  • Three-year Residential fixed for borrowers with an LVR of 80% has been cut by 50 basis points to 3.19% p.a. (4.42% p.a comparison rate*)

Rate cuts for investors:

  • Two-year Investment fixed for borrowers with an LVR of 80% has been cut by 30 basis points to 3.49% p.a. (4.59% p.a. comparison rate*)
  • Three-year Investment fixed for borrowers with an LVR of 80% has been cut by 50 basis points to 3.39% p.a. (4.47% p.a. comparison rate*)
  • Three-year Investment fixed for borrowers with an LVR of 90% has been cut by 70 basis points to 3.59% p.a. (4.53% p.a. comparison rate*)
  • Three-year Investment fixed for borrowers with interest-only (IO) repayments has been cut by 80 basis points to 3.49% p.a. (4.51% p.a. comparison rate*)

QBANK rate cuts

The member-owned bank for emergency service workers has cut variable rates effective from 15 November.

  • Classic Offer for borrowers with an LVR of 90% has been cut by 15 basis points to 3.04% p.a. (3.07% p.a. comparison rate*)
  • Classic Offer for borrowers with an LVR of 95% has been cut by 15 basis points to 3.30% p.a. (3.33% p.a. comparison rate*)
  • First Home Buyers Classic Offer for borrowers with an LVR of 95% has been cut by 15 basis points to 3.30% p.a. (3.33% p.a. comparison rate*)

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 2019. 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 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

In the interests of full disclosure, Savings.com.au 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 includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.

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author-avatar
Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand.

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