Bank of Us, Bank First slice home loan rates

author-avatar By 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
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
WIN YOUR HOME LOAN INTEREST FREE

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • WIN your home loan interest free and save up to $1.1 million. Refinance by 29 October. T&Cs apply.
  • Refinance Only. Fast online application, refinance in minutes, not weeks.
  • No Nano fees, Free 100% offset sub account. Mobile app. Visa debit card & instant payments.
WIN YOUR HOME LOAN INTEREST FREE

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • WIN your home loan interest free and save up to $1.1 million. Refinance by 29 October. T&Cs apply.
  • Refinance Only. Fast online application, refinance in minutes, not weeks.
  • 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.^
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

Rates correct as of September 28, 2021. 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 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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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 is passionate about breaking down complex financial topics for the everyday consumer.

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