BOQ, Bank of us and Hume Bank slice fixed rates

author-avatar By on November 29, 2019
BOQ, Bank of us and Hume Bank slice fixed rates

Photo by Igor Miske on Unsplash

It’s Black Friday folks and the kind people at Hume Bank, Bank of us and Bank of Queensland (BOQ) have got in the spirit this week by slashing fixed-rate home loans.

These cuts could be some of the last seen this year, with the Reserve Bank (RBA) cutting the cash rate three times already this year and the majority of economists predicting it will remain unchanged for December.

It’s widely predicted the central bank will cut to a historic 0.50% in February, but for now, Hume Bank, BOQ and Bank of us have got in early, or late, depending on which way you look at it.

Looking for a low variable rate home loan? The table below displays owner-occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks.

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) owner-occupied 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. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

BOQ rate cuts

Bank of Queensland has made changes to fixed rates of up to 25 basis points on its fixed-rate home loans, effective from 27 November:

  • Two-year fixed principal and interest (P&I) Home Loan Privileges Investment discount rate has been cut by 20 basis points to 3.24% p.a (4.30% p.a comparison rate*)
  • Three-year fixed P&I Home Loan Privileges Investment discount rate has been cut by 25 basis points to 3.24% p.a (4.24% p.a comparison rate*)
  • Two-year fixed P&I Investment discount rate has been cut by 20 basis points to 3.24% p.a (4.04% p.a comparison rate*)
  • Three-year fixed P&I Investment discount rate has been cut by 25 basis points to 3.24% p.a (3.97% p.a comparison rate*)
  • Three-year fixed interest-only (IO) Home Loan Privileges Investment discount rate has been cut by 25 basis points to 3.34% p.a (4.26% p.a comparison rate*)
  • Three-year fixed IO Investment discount rate has been cut by 25 basis points to 3.34% p.a (4.26% p.a comparison rate*)

Hume Bank rate cuts

Albury and Wodonga-based bank Hume Bank have made reductions of up to 19 basis points on its fixed-rate products, effective from 26 November:

  • Two-year fixed P&I Residential rate has been cut by 7 basis points to 3.12 p.a (4.37% p.a comparison rate*)
  • Three-year fixed P&I Residential rate has been cut by 14 basis points to 3.12 p.a (4.25% p.a comparison rate*)
  • Two-year fixed P&I investment rate has been cut by 14 points to 3.45% p.a (4.91% p.a comparison rate*)
  • Three-year fixed P&I investment rate has been cut by 19 points to 3.45% p.a (4.77% p.a comparison rate*)

Bank of us rate cuts

Tasmanian-based Bank of us has cut its fixed-rate home loans by up to 61 basis points, effective from 26 November:

  • One-year fixed FlexiDiscount rate with an LVR of 80% has been cut by 51 basis points to 3.38% p.a (3.40% p.a comparison rate*)
  • One-year fixed FlexiDiscount rate with an LVR of 90% has been cut by 61 basis points to 3.38% p.a (3.69% p.a comparison rate*)
  • Two-year fixed FlexiDiscount rate with an LVR of 80% has been cut by 31 basis points to 3.38% p.a (3.40% p.a comparison rate*)
  • Two-year fixed FlexiDiscount rate with an LVR of 90% has been cut by 41 basis points to 3.38% p.a (3.67% p.a comparison rate*)

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

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.

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

*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.

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Alex joined Savings.com.au in 2019. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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