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 | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | Featured Online ExclusiveUp To $4K Cashback |
| |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | Featured Apply In Minutes |
| |||||||||
6.14% p.a. | 6.16% p.a. | $2,434 | Principal & Interest | Variable | $0 | $250 | 60% | Featured Unlimited Redraws |
|
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'.
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Brooke Cooper
Harry O'Sullivan
Alex Brewster
Rachel Horan
