Bendigo, Adelaide, Citi and Heritage Banks slash home loan rates

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on April 03, 2020
Bendigo, Adelaide, Citi and Heritage Banks slash home loan rates

Photo by Scott Webb on Unsplash

It was another busy week for home loan interest rate cuts, with Bendigo & Adelaide Bank, Citi, Heritage Bank and others chopping the dinosaur.

ANZ cut earlier in the week, making it twice in one week ANZ made some changes to its home loan products.

Other institutions to cut home loan interest rates in the past week were Bendigo and Adelaide Banks, Citi, Heritage, Suncorp and others such as AMP, Bank Australia, and BCU. 

Fixed home loans tend to be getting most of the love these days, but overall, the variable market is still very competitive, which you can see below in the owner-occupied principal & interest (P&I) segment.

Lender

Variable
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UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL 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%
Variable
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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
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NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
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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
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's 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 June 25, 2022. View disclaimer.

Adelaide Bank rate cuts

Adelaide Bank made quite a raft of cuts to its fixed loans for both owner occupiers and investors. 

The biggest cut was by 90 basis points, applied to the SmartSaver Fixed interest-only loan for one year - down to 2.79% p.a. (2.85% p.a. comparison rate*).

Other key cuts include:

  • SmartFix P&I 2 Years: 60 basis point cut to 2.29% p.a. (2.95% p.a. comparison rate*)
  • Investment SmartFix P&I 2 Years: 70 basis point cut to 2.59% p.a. (3.25% p.a. comparison rate*)

The main difference between SmartFix and SmartSaver is that SmartFix has an attached offset account.

Bendigo Bank rate cuts

Bendigo Bank - part of the same family as Adelaide Bank - also made a wide variety of cuts, mainly to fixed loans. 

The biggest cut was by 65 basis points, which was the Basic Fixed Owner Occupied P&I 1 Year loan, down to 2.34% p.a. (3.13% p.a. comparison rate*). Other key cuts were:

  • Connect Package Fixed Owner Occupied 1 Year 250k+: 65 basis point cut to 2.59% p.a. (4.04% p.a. comparison rate*)
  • Basic Investment Fixed P&I One Year: 65 basis point cut to 2.64% p.a. (3.47% p.a. comparison rate*)

The Connect Package allows borrowers to 'connect' up to three additional products, including a transaction account, car insurance, credit card and more, with a monthly service fee of $20.

Citi rate cuts

Citi cut rates by up to 40 basis points.

The 40 basis point cut applied to a few loans, including the Mortgage Plus Standard Fixed 1 Year (P&I 80% LVR 350k+) loan, down to 2.49% p.a. (3.20% p.a. comparison rate*).

Other key cuts included:

  • Investment Standard Fixed P&I One Year 80% 350k+: 30 basis point cut to 2.79% p.a. (5.02% p.a. comparison rate*)
  • Standard Fixed P&I 5 Years 80% 350k+: 20 basis point cut to 2.79% p.a. (4.30% p.a. comparison rate*)

One of the reasons for the higher comparison rate on fixed loans, like with all banks and lenders, is that the comparison rate assumes the borrower will accept the lender's revert rate at the end of the fixed period, instead of refinancing. 

Heritage Bank rate cuts

Heritage Bank also cut rates by up to 40 basis points, which includes the Residential Fixed 2 Year loan, down to 2.59% p.a. (4.26% p.a. comparison rate*).

Other key cuts were:

  • Home Advantage Residential Fixed 1 Year 150k+: 30 basis point cut to 2.59% p.a. (3.40% p.a. comparison rate*)
  • Home Advantage Investment Fixed P&I 1 Year 150k+: 29 basis point cut to 2.89% p.a. (3.65% p.a. comparison rate*)

'Home Advantage' is a packaged loan series, allowing customers to bundle credit cards, lines of credit, and an offset account. 

Suncorp rate cuts

Suncorp cut rates by up to 35 basis points, which encompassed a variety of fixed loans, including the Home Package Plus P&I loan with an 80% LVR for 2 years.

This rate was reduced to 2.29% p.a. (3.32% p.a. comparison rate*). Other cuts included:

  • Owner Occupied Fixed P&I 2 Years: 35 basis point cut to 2.74% p.a. (4.75% p.a. comparison rate*)
  • Home Package Plus Investment <80% Fixed P&I 3 yrs: 15 basis point cut to 2.79% p.a. (3.65% p.a. comparison rate*)

It's important to note that some of these home loans are discounted by up to 45 basis points as a 'special offer', which means the offer can be withdrawn at any time. 

Other rate cuts

Numerous other banks and lenders cut home loan rates in the past week, with the more noteworthy ones being:

AMP

AMP cut home loan rates on a variety of products and was one of the few to give love to variable home loans.

AMP cut variable rates by up to 25 basis points, with one of them being the Essential Home Loan 80% 100k product, as a 'special offer', down to 2.77% p.a. (2.80% p.a. comparison rate*).

As usual, special offers can be withdrawn at any time.

Bank Australia

The bank that promises to 'bank responsibly' made a massive cut by 105 basis points in the past week.

This was applied to quite a few home loans, including the Basic Fixed 1 Year 80% LVR loan, down to 2.34% p.a. (3.17% p.a. comparison rate*). 

BCU

Bananacoast Credit Union cut by up to 66 basis points.

This was applied to its Fixed Residential Loans for 2 and 3 Years, paying P&I. The rates are:

  • 2 Years Fixed: 2.25% p.a. (3.80% p.a. comparison rate*)
  • 3 Years Fixed: 2.27% p.a. (3.66% p.a. comparison rate*)

Other loans to receive cuts were its 'OMG' range of products for both owner occupiers and investors: yes - 'Oh My God'. 


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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