Bank of Us, Bank First slice home loan rates

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on August 07, 2020
Bank of Us, Bank First slice home loan rates

Photo by Paul Carmona on Unsplash

In the past week, lenders such as Bank of Us and Bank First cut home loan rates by up to 64 basis points, as two others broke the 2.00% p.a. barrier.

In the past week, two lenders - Community First Credit Union and Easy Street Financial Services - introduced home loans below the 2.00% p.a. mark.

However, only one had a comparison rate under 2.00% p.a. to go with it.

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
NSW/VIC/SA METRO & INNER REGIONAL AREAS
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 June 26, 2022. View disclaimer.

In the wider market, it was a fairly subdued week for home loan interest rate reductions. 

Two key lenders to make notable rate reductions were Bank of Us and Bank First.

Bank of Us - a Tasmanian-based lender that was the first to introduce a sub-2.00% home loan a few weeks back - made some further rate changes to its fixed products. Some key changes were:

  • FlexiDiscount Fixed 3 Years 80%: 64 basis point cut to 2.49% p.a. (2.74% p.a. comparison rate*)
  • FlexiDiscount Fixed 1 Year 80%: 44 basis point cut to 2.49% p.a. (2.78% p.a. comparison rate*)

A variety of other fixed owner-occupier loans were cut, including some 90% LVR loans.

Meanwhile, at the start of August Bank First also made some cuts, primarily to its variable 'Premier Package' home loans for both owner-occupiers and investors. Some key cuts were:

  • Premier Package Inv 80%: 15 basis point cut to 2.88% p.a. (3.32% p.a. comparison rate*)
  • Premier Package O/O 80%: 15 basis point cut to 3.33% p.a. (3.76% p.a. comparison rate*)

Various 90% LVR products were also cut.

Newcastle Permanent, AMP also cut

Newcastle Permanent made a few cuts to its 'Real Deal' home loans, with some as special offers. Some key cuts were:

  • Real Deal P&I 80% Special Offer: 13 basis point cut to 2.59% p.a. (2.63% p.a. comparison rate*)
  • Real Deal P&I 80% Inv Special Offer: 12 basis point cut to 2.99% p.a. (3.03% p.a. comparison rate*)

Similar loans across different maximum LVRs and ones paying interest-only were also cut.

Meanwhile, AMP made just two cuts on Wednesday. They were to its variable 'Professional Package' home loans as a special offer:

  • P&I 80% 100-499k: 14 basis point cut to 2.59% p.a. (3.00% p.a. comparison rate*)
  • P&I 80% 500k+: 10 basis point cut to 2.59% p.a. (3.00% p.a. comparison rate*)

Note that as with most lenders, special offers can be withdrawn at any time.


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.

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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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