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Keep in mind home loan 'special offers' can be withdrawn at any time.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

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
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/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 July 3, 2022. 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. 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.

Latest Articles

author-avatar
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.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy