BCU raises home loan interest rates, while Aussie, Newcastle Permanent cut

author-avatar By on January 17,2020
BCU raises home loan interest rates, while Aussie, Newcastle Permanent cut

Photo by Maximillian Conacher on Unsplash

With the RBA slated to cut interest rates in February, a few lenders appear to have gotten ahead of the curve, with Aussie making sweeping cuts across many of its home loan products this week while Newcastle Permanent and BCU also moved rates on several products.

In the last week, Aussie Home Loans cut rates on many of its home loans including loans for owner-occupiers and investors making principal and interest (P&I) or interest only repayments.

BCU raised rates slightly on several products, and cut others, while Newcastle Permanent cut rates slightly on some of its products.

Overall, the largest cuts were generally seen in the fixed interest-only category.

Owner-occupiers

Aussie Fixed

For fixed PI loans, Aussie has made the following changes:

  • Select Basic Fixed loans between two and three years, with LVRs over 80% saw a 10 basis point decrease to 2.89% p.a.  (3.56% p.a. - 3.50% p.a. comparison rate*)
  • Select Standard Fixed loans between two and three years also saw 10 basis point cuts to 2.89% p.a. (3.75% p.a. - 3.68% p.a. comparison rate*)
  • Select Basic Fixed for one year with LVRs over 80% saw a cut of 30 basis points to 3.39% p.a (3.68% p.a. comparison rate*)
  • Select Standard Fixed for one year also saw a 30 basis point cut to 3.39% p.a. (3.86% p.a. comparison rate*)
  • Select Basic Fixed for between four and five years with LVRs over 80% saw a 40 basis point cut to 3.59% p.a. (3.67% p.a. - 3.66% p.a. comparison rate*)
  • Select Standard Fixed for between four and five years also saw a 40 basis point cut to 3.59% p.a. (3.85% p.a. comparison rate*)

For fixed IO loans, Aussie has made the following changes:

  • Select Basic Fixed for between two and three years saw 35 basis point cuts to 3.59% p.a (3.60% p.a. comparison rate*)
  • Select Standard Fixed for between one and three years saw the same changes (3.79% p.a. comparison rate*).
  • Select Basic and Standard Fixed for between four and five years saw 40 basis point cuts to 3.69% p.a (3.82% - 3.83% p.a. comparison rate*)

Aussie Variable

For variable IO rates, Aussie has made the following changes 

  • Select Basic and Standard Variable rates for loans of 100-499k and 500k+ at 80% LVR saw cuts of 25 basis points to 3.59% p.a. (3.60% p.a. comparison rate*)

BCU 

BCU only made changes to its fixed home loans. 

For fixed PI loans, BCU made the following changes:

  • One year loans saw a 6 basis point rise to 2.85% p.a. (4.28% p.a. comparison rate*)
  • Three year loans saw a 9 basis point cut to 2.99% p.a. (4.06% p.a. comparison rate*)
  • Five year loans saw a 15 basis point cut to 3.39% p.a. (4.02% p.a. comparison rate*)

For fixed IO loans, BCU made the following changes:

  • One year loans saw a 6 basis point p.a. rise to 2.95% p.a. (4.29% p.a. comparison rate*)
  • Three year loans saw a 9 basis point cut to 3.09% p.a. (4.09% p.a. comparison rate*)
  • Five year loans saw a 15 basis point cut to 3.49% p.a. (4.06% p.a. comparison rate*)

Newcastle Permanent

Newcastle Permanent saw cuts to its fixed loans only:

  • Premium Package Residential Fixed IO and PI 5k+ for two years saw a 10 basis point cut to 2.79% p.a. (4.02% p.a. comparison rate*)
  • Residential Fixed IO and PI for two years saw a 10 basis point cut to 2.89% p.a. (4.25% p.a. comparison rate*)

Looking for a low variable rate home 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
repayment
 
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 18 May 2020. View disclaimer.

Investors

Aussie Fixed

For fixed investor PI loans, Aussie made the following changes:

  • Select Standard and Basic Fixed for four or five years saw rates cut by 45 basis points to 3.69% p.a (3.70% p.a. comparison rate*)

For IO loans, Aussie made the following changes:

  • Select Standard and Basic Fixed for two years saw cuts of 40 basis points to 3.59% p.a (3.89% p.a. comparison rate*)
  • Select Standard and Basic Fixed for one year saw cuts of 40 basis points to 3.64% p.a (3.93% p.a. comparison rate*)
  • Select Standard and Basic Fixed for three years saw cuts of 35 basis points to 3.64% p.a. (3.88% p.a. comparison rate*)
  • Select Standard and Basic Fixed for four or five years saw cuts of 40 basis points to 3.94% p.a. (4.13% p.a. comparison rate*)

Aussie Variable

For variable PI loans, Aussie made the following changes:

  • Select Standard and Basic 100-499k and 500k+ 70% LVR saw cuts of 40 basis points to 3.39% p.a. (3.40% p.a. comparison rate*)
  • Select Standard and Basic 100-499k and 500k+ 80% LVR saw cuts of 40 basis points to 3.49% p.a. (3.50% p.a. comparison rate*)

For variable IO loans, Aussie made the following changes:

  • Select Standard 100-499k and 500k+ 80% LVR saw cuts of 40 basis points to 3.84% p.a (4.03% p.a. comparison rate*)
  • Select Standard and Basic 100-499k and 500k+ 90% LVR saw cuts of 25 basis points to 4.09% p.a (4.28% p.a. comparison rate*)

BCU

BCU investment loans only saw cuts in the fixed sector.

For PI loans, BCU made the following changes:

  • One year loans saw a cut of 32 basis points to 2.98% p.a. (4.44% p.a. comparison rate*)
  • Three year loans saw a cut of 21 basis points to 3.12% p.a. (4.21% p.a. comparison rate*)
  • Five year loans saw a cut of 27 basis points to 3.52% p.a. (4.17% p.a. comparison rate*)

For IO loans, BCU made the following changes:

  • One year loans saw a cut of 40 basis points to 3.00% p.a. (4.44% p.a. comparison rate*)
  • Three year loans saw a cut of 40 basis points to 3.14% p.a. (4.22% p.a. comparison rate*)
  • Five year loans saw a cut of 35 basis points to 3.54% p.a. (4.18% p.a. comparison rate*)

Newcastle Permanent

Newcastle Permanent investment PI and IO loans saw the following changes to its fixed products only:

  • Investment Fixed fixed for two years saw a 12 basis point cut to 3.27% p.a. (4.59% p.a. comparison rate*)
  • Premium Plus Package fixed for two years 5k+ saw a 12 basis point cut to 3.17% p.a. (4.36% p.a. comparison rate*)

Disclaimers

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

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author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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