Beyond Bank slashes home loan rates for FHLDS participants

author-avatar By on July 16, 2021
Beyond Bank slashes home loan rates for FHLDS participants

It was a tale of two customer-owned banks this week, with Beyond Bank cutting some home loan rates while Heritage Bank increased.

As the old saying goes, "The world spins on its axis; one man works while another relaxes."

This morning, Beyond Bank cut rates slightly on some home loans for owner occupiers, including:

  • Variable 'Total' First Home Buyers Package: 9 basis point cut to 2.90% p.a. (3.32% p.a. comparison rate*)
  • First Home Buyers Fixed 1 Year: 10 basis point cut to 2.59% p.a. (3.95% p.a. comparison rate*)
  • First Home Buyers Fixed 2 Years: 10 basis point cut to 2.59% p.a. (3.86% p.a. comparison rate*)
  • First Home Buyers Fixed 3 Years: 10 basis point cut to 2.59% p.a. (3.78% p.a. comparison rate*)

These cuts apply to home loans for borrowers paying principal & interest (P&I) and follows on from Beyond Bank cutting interest-only (IO) loan rates in late June.

An important disclaimer, however, is that these 'first home buyer' home loans are available only to those who qualify for the First Home Loan Deposit Scheme (FHLDS), which was expanded on 1 July.

Ten thousand new spots were opened up at the start of the new financial year, open until the end of the 2021-22 financial year.

Meanwhile, Heritage Bank hiked a few rates, namely to variable loans, including:

  • Home Advantage Variable 95% 700k+: 30 basis point increase to 3.29% p.a. (3.68% p.a. comparison rate*)
  • Home Advantage Variable 95% 250k-699k: 20 basis point increase to 3.29% p.a. (3.68% p.a. comparison rate*)
  • Home Advantage Variable 95% 150k-249k: 20 basis point increase to 3.29% p.a. (3.68% p.a. comparison rate*)
  • Discount Variable 90-95% 150k+: 20 basis point increase to 3.09% p.a. (3.14% p.a. comparison rate*)

Adelaide Bank also cuts

Earlier in the week, Adelaide Bank made a number of changes to home loans, mostly to its variable 'SmartFit' and 'SmartSaver' lines for both owner occupiers and investors. Some noteworthy changes were:

  • SmartFit Variable P&I 80%: 20 basis point cut to 2.29% p.a. (2.53% p.a. comparison rate*)
  • SmartSaver Variable P&I 80%: 20 basis point cut to 2.29% p.a. (2.33% p.a. comparison rate*)
  • Inv SmartFit Variable P&I 80-90%: 24 basis point cut to 2.99% p.a. (3.22% p.a. comparison rate*)
  • Inv SmartSaver Variable P&I 80-90%: 24 basis point cut to 2.99% p.a. (3.03% p.a. comparison rate*)

The main difference between the two product lines is that the SmartFit series comes with a 100% offset account, with the annual cost reflected in the slightly higher comparison rate.


Photo by Toa Heftiba on Unsplash

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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