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.

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
2.68% 2.74% $1,618 More details

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 01 June 2020. 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 2019. They are (in descending order): Credit Union Australia, 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 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

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 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.

*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.

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author-avatar
Emma joined Savings.com.au as a Finance Journalist in 2019. She is a journalist with more than five years experience across print, broadcast and digital media, with previous stints at Style Magazines, 4ZZZ radio, and as editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of young women and millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand. When she's not writing about finance she's watching Greys Anatomy (again).

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