They're not monkeying around: BankVic cuts home loan rates to 2.75%

author-avatar By on December 13, 2019
They're not monkeying around: BankVic cuts home loan rates to 2.75%

Photo by Jared Rice on Unsplash

Despite the Reserve Bank deciding not to end the year with a bang by cutting rates, it hasn't stopped lenders from dropping theirs.

BankVic and Yellow Brick Road have gotten in the Christmas spirit by dropping their fixed and variable home loan rates by as much as 109 basis points.

Home loan interest rates have been on the downwards slide for large parts of the year thanks to the Reserve Bank, who have made not one, not two, but three cuts to the official cash rate. It's now sitting at a historically low 0.75%.

With a fourth interest rate cut likely on the way in February, it's unlikely these will be the last cuts to home loan interest rates we'll see so it may be worth holding out before fixing your loan.

The table below displays a selection of variable-rate home loans on offer, featuring a low-rate pick from each of the following three categories: the big four banks, the top 10 customer-owned banks, and the larger non-banks.

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
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.^
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES

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 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. Rates correct as of October 28, 2021. View disclaimer.

BankVic home loan rate cuts:

BankVic has cut its fixed home loan rates by up to 99 basis points across its fixed home loans for investors and owner occupiers.

For owner occupiers:

  • Premium Home two-year fixed 50k+ has been cut by 24 basis points to 2.75% p.a.(3.95% p.a. comparison rate*)
  • Premium Home three-year fixed 50k+ has been cut by 48 basis points to 2.75% p.a. (3.84% p.a. comparison rate*)
  • Premium Home five-year fixed 50k+ has been cut by 99 basis points to 2.95% p.a. (3.72% p.a. comparison rate*)
  • Two-year fixed has been cut by 24 basis points to 2.85% p.a. (3.97% p.a. comparison rate*)
  • Three-year fixed has been cut by 48 basis points to 2.85% p.a. (3.87% p.a. comparison rate*)
  • Four-year fixed has been cut by 109 basis points to 3.05% p.a. (3.83% p.a. comparison rate*)
  • Five-year fixed has been cut by 99 basis points to 3.05% p.a. (3.76% p.a. comparison rate*)

For investors:

  • Premium Home Investor fixed two-years 50k+ has been cut by 20 basis points to 3.29% p.a. (4.69% p.a. comparison rate*)
  • Premium Home Investor fixed three-years 50k+ has been cut by 28 basis points to 3.29% p.a. (4.43% p.a. comparison rate*)
  • Premium Home Investor fixed four-years 50k+ has been cut by 80 basis points to 3.49% p.a. (4.39% p.a. comparison rate*)
  • Premium Home Investor fixed five-years 50k+ has been cut by 70 basis points to 3.49% p.a. (4.29% p.a comparison rate*)

Yellow Brick Road home loan rate cuts:

Yellow Brick Road have made some smaller cuts to their fixed and variable home loan rates for owner occupiers, dropping by 6 basis points. 

  • Flexi Options 60% Special Offer has been cut by 6 basis points to 3.08% p.a. (3.12% p.a. comparison rate*)
  • Flexi Options 80% Special Offer has been cut by 6 basis points to 3.08% p.a. (3.12% p.a. comparison rate*)
  • Flexi Options 90% Special Offer has been cut by 6 basis points to 3.08% p.a. (3.12% p.a. comparison rate*)
  • Flexi Options Fixed P&I two-years special offer has been cut by 6 basis points to 3.08% p.a. (3.12% p.a. comparison rate*)
  • Flexi Options Fixed P&I three-years special offer has been cut by 6 basis points to 3.08% p.a. (3.12% 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 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
Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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