Citi, HSBC and Pacific Mortgage Group cut fixed home loan rates

author-avatar By on October 22,2019
Citi, HSBC and Pacific Mortgage Group cut fixed home loan rates

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With at least one more cash rate cut expected in the near future, a few more lenders have cut fixed home loan rates below 3.00% p.a. – enticing borrowers to lock in their interest rates.

Retail banks Citi and HSBC, plus Sydney-based non-bank lender Pacific Mortgage Group, are among those now offering sub-3.00% p.a. fixed rates for three years or more.

Notably, Citi even cut some of its five-year fixed loans below the 3.00% p.a. threshold for both owner-occupiers and investors.

On the surface, the newly advertised fixed rates compare favourably with some of the lowest variable home loan rates on the market, although there can be added dangers to fixed-rate products.

Below are some of the lowest variable home loan rates on offer across the big four banks, customer-owned banks and larger non-banks.

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
2.68% 2.74% $1,618 More details

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) 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. The product and rate must be clearly published on the Product Provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 01 June 2020. View disclaimer.

Citi fixed rate cuts

Citi cut a number of fixed-rate home loans for owner occupiers and investors by up to 70 basis points to as low as 2.74% p.a. (comparison rates differ, see below).

Mortgage Plus (package) Standard home loans:

  • One-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.33% p.a. comparison rate*)
  • Two-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.31% p.a. comparison rate*)
  • Three-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.29% p.a. comparison rate*)
  • Five-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.26% p.a. comparison rate*)

Standard Fixed home loans:

  • One-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (5.24% p.a. comparison rate*)
  • Two-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (5.00% p.a. comparison rate*)
  • Three-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (4.79% p.a. comparison rate*)
  • Five-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (4.42% p.a. comparison rate*)

Investment loans (without Mortgage Plus):

  • One-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (5.26% p.a. comparison rate*)
  • Two-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (5.05% p.a. comparison rate*)
  • Three-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (5.26% p.a. comparison rate*)
  • Five-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (4.52% p.a. comparison rate*)

HSBC fixed rate cuts

HSBC cut some of its owner occupier fixed rates by up to 44 basis points to as low as 2.75% p.a. (comparison rates differ, see below).

  • One-year Premier Residential Fixed for borrowers making P&I repayments with a loan size of $500k+ has been cut by 24 basis points to 2.75% p.a. (3.50% p.a. comparison rate*)
  • Three-year Premier Residential Fixed for borrowers making P&I repayments with a loan size of $500k+ has been cut by 44 basis points to 2.75% p.a. (3.45% p.a. comparison rate*)
  • One-year Residential Fixed for borrowers making P&I repayments has been cut by 44 basis points to 2.75% p.a. (3.50% comparison rate*)

Pacific Mortgage Group fixed rate cuts

Lesser-known Pacific Mortgage Group have made smaller cuts to a couple of its fixed home loans for owner occupiers, slashing rates on both by 20 basis points to 2.74% p.a. (comparison rates differ, see below).

  • Two-year Residential Fixed for borrowers making P&I repayments has been cut by 20 basis points to 2.74% (2.83% p.a. comparison rate*)
  • Three-year Residential Fixed for borrowers making P&I repayments has been cut by 20 basis points to 2.74% (2.82% 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 2019) 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 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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author-avatar
Emma joined Savings.com.au as a Finance Journalist in 2019. She is a journalist with more than five years experience across print, broadcast and digital media, with previous stints at Style Magazines, 4ZZZ radio, and as editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of young women and millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand. When she's not writing about finance she's watching Greys Anatomy (again).

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