Bank of China, Greater Bank slash home loan rates

author-avatar By on July 03, 2020
Bank of China, Greater Bank slash home loan rates

Photo by Joseph Marcus on Unsplash

Australia's least trusted and most trusted banks, according to an earlier survey, slashed rates by up to 60 basis points in the past week.

Trustworthiness was ranked in a Banking Brand and Trust Index survey released early in May, with Greater Bank deemed the 'most trustworthy' with a score of +23 (on a scale from negative 100 to positive 100), while Bank of China was least trustworthy at -21.

Both of these banks have cut home loan rates over the past week. 

Bank of China made cuts to its fixed home loans from one to five years, including:

  • Discount Plus Home Loan P&I Special Offer: 10 basis point cut to 2.68% p.a. (3.13% p.a. comparison rate*)
  • Fixed Rate Investment Loan P&I 1 Year: 60 basis point cut to 3.09% p.a. (4.26% p.a. comparison rate*)

Across the board, Bank of China cut interest rates on home loans for both owner-occupiers and investors paying interest-only (IO) as well as principal and interest (P&I) by between nine and 60 basis points.

Keep in mind home loan 'special offers' can be withdrawn at any time.

Last Friday, Greater Bank cut home loan interest rates by up to 45 basis points, with investors getting most of the sugar. Some key cuts include:

  • Great Rate Investment Fixed P&I 2 Years: 45 basis point cut to 2.54% p.a. (3.79% p.a. comparison rate*)
  • Great Rate Fixed 1 Year: 10 basis point cut to 2.09% p.a. (3.53% p.a. comparison rate*)

Greater Bank's loans are now edging close to breaking the 1% barrier, and earlier in the week one lender broke that barrier.

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 27, 2021. View disclaimer.

Challenger banks bring on the cuts

More lenders, particularly customer-owned institutions and challenger brands, cut rates in the past week.

Queensland Country Bank

The bank that sponsors the NRL Cowboys' stadium made some cuts as 'special' offers at the start of the month: 

  • Investment Special Variable Package P&I 80%: 35 basis point cut to 2.79% p.a. (3.17% p.a. comparison rate*)
  • Special Variable Package P&I 80%: 35 basis point cut to 2.79% p.a. (3.17% p.a. comparison rate*)

Queensland Country Bank stands among very few other lenders that offer the same rates for both owner-occupiers and investors.

The packaged home loans give borrowers access to a transaction account, a low-rate credit card and offset account.

Bank First

Bank First also made cuts to some packaged home loans this week. 

All cuts in the past week were by 25 basis points. Some include:

  • Premier Package Owner Occupier P&I Fixed 3 Years 80%: 25 basis point cut to 2.19% p.a. (3.26% p.a. comparison rate*)
  • Complete Investment P&I Fixed 3 Years 80%: 25 basis point cut to 2.54% p.a. (3.43% p.a. comparison rate*)

Like with many lenders, to access the most competitive rates borrowers usually need to have a deposit of 20% or greater, as seen in the cuts above.


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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