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

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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.

Lender

Variable
More details
  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws

Variable Home Loan (LVR < 70%)

  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws
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
NO ONGOING FEES
  • 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
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • 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

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 20, 2022. 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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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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