Bank of Sydney cuts fixed home loans by up to 97 basis points

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on April 24, 2020
Bank of Sydney cuts fixed home loans by up to 97 basis points

Photo by Josh Withers on Unsplash

More focus has been put on fixed home loan interest rates, as a bevy of lenders in the past week cut by up to 97 basis points.

A few more lenders passed on home loan rate cuts in the past week, over a month on from the emergency RBA rate cut in March.

Last week, People's Choice Credit Union was one of the only ones to make cuts - but others joined the party this week.

Lenders such as Bank of Sydney, Bankwest, Bank First and various mutuals cut home loan interest rates - primarily in the fixed rate sector.

Across the board, many fixed home loans now have comparable interest rates to their variable loan counterparts in the residential space, as seen in the table below.

Lender

Variable
More details
UNLIMITED REDRAWS
UNLIMITED REDRAWS

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

    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
    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
    AN EASY DIGITAL APPLICATION
    • No ongoing fees - None!
    • Unlimited additional repayments
    • Easy online application, find out if you're approved quick!
    • Redraw- Access your additional payments if you need them
    • Use the app to get loan insights to help you pay off your home loan faster
    AN EASY DIGITAL APPLICATION

    Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

    • No ongoing fees - None!
    • Unlimited additional repayments
    • Easy online application, find out if you're approved quick!
    • Redraw- Access your additional payments if you need them
    • Use the app to get loan insights to help you pay off your home loan faster
    Variable
    More details
    • Low rate home loan with added benefits, add offset for 0.10%
    • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
    • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs apply

    Green Home Loan (Principal and Interest)

    • Low rate home loan with added benefits, add offset for 0.10%
    • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
    • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs 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 August 10, 2022. View disclaimer.

    Bank of Sydney

    Last Friday, Bank of Sydney made cuts to quite a few of its fixed residential and investment loans. Key cuts were:

    • Expect More Residential Fixed 5 Years (No Fee): 97 basis point cut to 2.99% p.a. (2.98% p.a. comparison rate*)
    • Expect More Investment Fixed 5 Years: 91 basis point cut to 3.35% p.a. (3.85% p.a. comparison rate*)

    Expect More Residential 1 and 2 year fixed rates also got a haircut by 87 basis points - now down to 2.79% p.a. (2.95% p.a. and 2.93% p.a. comparison rates* respectively).

    For the Expect More packaged home loans, borrowers must have an LVR of 70% i.e. a 30% deposit.

    Bankwest

    Bankwest's biggest cuts were to its fixed loans, paying principal and interest (P&I).

    • Complete Home Loan Fixed Investment 3 Years P&I: 20 basis point cut to 2.49% p.a. (3.98% p.a. comparison rate*)
    • Fixed Rate Investment 3 Years P&I: 20 basis point cut to 2.69% p.a. (4.75% p.a. comparison rate*)

    The Complete Home Loan is a packaged product that includes a credit card and offset account options.

    Bank First

    Bank First cut a range of fixed home loans 60 basis points, both for owner occupiers and investors. Key cuts were:

    • Premier Package O/O 1 Year P&I 80%: 2.29% p.a. (3.40% p.a. comparison rate*)
    • Premier Package O/O 2 Years P&I 80%: 2.29% p.a. (3.34% p.a. comparison rate*)
    • Premier Package Inv 1 Year P&I 80%: 2.59% p.a. (3.83% p.a. comparison rate*)
    • Premier Package Inv 2 Years P&I 80%: 2.59% p.a. (3.75% p.a. comparison rate*)

    The Premier Package includes redraw and offset facilities, early payments capability and the ability to borrow up to 85% LVR with no lenders mortgage insurance.

    The Mutual Bank

    The Mutual cut home loan rates by up to 70 basis points, mainly in the fixed realm paying P&I. Key cuts were:

    • Package Home Loan Premium Fixed 1 Year 150k+: 70 basis point cut to 2.29% p.a. (3.78% p.a. comparison rate*)
    • Premium Fixed 1 Year: 70 basis point cut to 2.39% p.a. (3.99% p.a. comparison rate*)
    • Package Home Loan Inv Premium Fixed 1 Year 150k+: 5 basis point cut to 3.29% p.a. (4.23% p.a. comparison rate*)
    • Investor Premium Fixed 1 Year: 5 basis point cut to 3.39% p.a. (4.45% p.a. comparison rate*)

    The Package home loans include offset accounts, a redraw facility and discounted access to other products.

    G&C Mutual Bank

    G&C Mutual cut home loan rates by up to 40 basis points.

    The home loans to get some love were, you guessed it, fixed loans, primarily for investors. Key cuts were: 

    • Investment Standard Fixed P&I 5 Years: 40 basis point cut to 3.39% p.a. (3.45% p.a. comparison rate*)
    • Investment Standard Fixed P&I 1 Year: 30 basis point cut to 2.99% p.a. (3.04% p.a. comparison rate*)

    Various other investment loans fixed from 1-5 years also saw cuts, including those paying interest-only.

    Australian Unity

    Australian Unity cut a range of home loans for both owner occupiers and investors, and all by 10 basis points. Key cuts were:

    • Health Wealth Happiness Fixed 1 Year P&I: 2.59% p.a. (3.29% p.a. comparison rate*)
    • Health Wealth Happiness Fixed 3 Years P&I: 2.59% p.a. (3.24% p.a. comparison rate*)
    • Wealth Builder Investor Fixed 1 Year P&I: 2.95% p.a. (3.62% p.a. comparison rate*)
    • Wealth Builder Investor Fixed 3 Years P&I: 2.95% p.a. (3.57% p.a. comparison rate*)

    These are package home loans. The Health Wealth Happiness package includes discount rates on other products, as well as up to $1,250 for couples/families for Australian Unity private health cover. 

    The Wealth Builder package also includes private health discounts, optional credit card with no annual fee and more.




    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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