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While most mortgage lenders might have dropped their interest rates lately, one lender has bucked that trend by increasing some of its rates.
Non-major bank Citi has increased variable and fixed, residential and investment interest rates by up to 0.25 basis points, while NAB has dropped some of its special home loan interest rates.
The changes from Citi are effective for new loans submitted from 4 December 2019, and apply to the following loans:
For owner-occupiers:
- variable rates now start from 3.06% p.a. (3.11% p.a. comparison rate), an increase of 23 basis points
- fixed rates now start from 2.89% p.a. (3.50% p.a. comparison rate), an increase of 25 basis points
For investors:
- variable rates now start from 3.29% p.a. (3.34% p.a. comparison rate), an increase of up to 10 basis points, and;
- fixed rates now start from 3.09% p.a. (3.69% p.a. comparison rate), an increase of up to 25 basis points
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.
Lender | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Variable | More details | ||||||||||||
FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Variable | More details | ||||||||||||
FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Variable | More details | ||||||||||||
FEATUREDZERO APPLICATION FEESFEE FREE OFFSET | Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)
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Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)
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Variable | More details | ||||||||||||
FEATUREDAN EASY DIGITAL APPLICATION | Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
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Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
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Variable | More details | ||||||||||||
NO APPLICATION FEES | Yard Home Loan (Principal and Interest) (LVR < 80%)
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Yard Home Loan (Principal and Interest) (LVR < 80%)
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Variable | More details | ||||||||||||
NO UPFRONT OR ONGOING FEES | Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)
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Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)
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Variable | More details | ||||||||||||
NO UPFRONT OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)
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Variable | More details | ||||||||||||
UNLIMITED EXTRA REPAYMENTS | |||||||||||||
Basic Home Loan (Principal and Interest) (LVR < 60%) | |||||||||||||
Variable | More details | ||||||||||||
EASY DIGITAL APPLICATION | |||||||||||||
Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%) | |||||||||||||
Variable | More details | ||||||||||||
$0 APPLICATION FEE | |||||||||||||
Budget Home Loan (Principal and Interest) (LVR < 80%) | |||||||||||||
Variable | More details | ||||||||||||
100% FULL OFFSET ACCOUNT | |||||||||||||
Offset Package Home Loan (Principal and Interest) (LVR < 60%) | |||||||||||||
Variable | More details | ||||||||||||
FEATUREDLIMITED TIME OFFER | Smart Booster Home Loan Discounted Variable - 1yr
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Smart Booster Home Loan Discounted Variable - 1yr
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- 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%
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 29, 2022. View disclaimer.
It's unusual to see interest rate increases at the moment. While there was no Christmas rate cut this week, most lenders have been steadily dropping rates since the first Reserve Bank rate cut in June.
In a statement sent to Savings.com.au, Citi said this change was made to "improve processing efficiencies".
"During the Spring peak period, Citi offered 2.96% for Owner Occupiers, and is now moving to 3.19%," Citi said.
"This change does not impact existing customers or customers who applied prior to December 4."
According to Citi, the 2.96% p.a. offer for owner occupiers was "the most competitive in market", although there are currently still rates lower than this.
Citi said it saw mortgage application volumes triple as a result.
"As a result, processing times were pushed out, causing delays for customers waiting for financing approval for their home loans."
"To avoid this situation, Citi made the decision to raise rates to allow the business time to ensure completion of existing applications, improve our processing times, and give a better customer experience, while still offering a competitive rate."
NAB cuts special offer rates
NAB was the only big four bank to cut home loan rates this week, and indeed over the last few weeks as the big four remain relatively quiet heading into the new year.
NAB's special offer home loan rate - a low rate given exclusively to customers who deposit 20% or more of the property's value - has been cut by 11 basis points across both residential and investment variable home loans.
For owner-occupiers:
- Base variable rate P&I (LVR below 80%) now starts from 3.09% p.a. (3.09% p.a. comparison rate), down from 3.20% p.a.
- Base variable rate P&I (LVR above 80%) now starts from 3.29% p.a. (3.29% p.a. comparison rate), down from 3.40% p.a.
For investors:
- Base variable rate P&I (LVR below 80%) now starts from 3.39% p.a. (3.39% p.a. comparison rate), down from 3.50% p.a.
- Base variable rate P&I (LVR above 80%) now starts from 3.59% p.a. (3.59% p.a. comparison rate), down from 3.70% p.a.
NAB was also chosen last week as the first of two major lenders to offer mortgages under the Federal Government’s First Home Loan Deposit Scheme, while it also recently announced a cashback bonus of up to $4,000 for refinances and $2,000 for new purchases From January 1.
"We are excited to further strengthen our competitive home loan offering, with these changes showing our ongoing commitment to support customers’ home ownership goals," NAB Executive General Manager Leigh O'Neil told Savings.com.au.
"The $4,000 cash bonus on refinancing is NAB’s highest ever cash bonus offer and with rates at record lows, now is the perfect time for Australians to look at refinancing their loan.
"The rate change to our Base Variable Rate product takes it to its lowest level on record and for customers looking to buy a new home, can be combined with the $2,000 cash bonus and application fee waiver."
TicToc drops variable and fixed rates
Smaller online lender TicToc yesterday cut various home loan interest rates by up to 10 basis points, applying to both investment and owner-occupier loans for fixed and variable rates.
The 10 basis points applies only to investment, interest-only (IO) loans.
For owner-occupiers:
- Live-in variable P&I rate cut by 5 basis points to 2.79% p.a. (2.80% p.a. comparison rate).
For investors:
- Variable P&I rate cut by 5 basis points to 3.15% p.a. (3.16% p.a. comparison rate).
- Fixed P&I 1 year rate cut by 5 basis points to 2.89% p.a. (3.14% p.a. comparison rate)
- Fixed P&I 2 year rate cut by 5 basis points to 2.89% p.a. (3.11% p.a. comparison rate
- Fixed P&I 3 year rate cut by 5 basis points to 2.89% p.a (3.09% p.a. comparison rate)
- Fixed IO 1 year rate cut by 10 basis points to 2.99% p.a. (3.14% p.a. comparison rate)
- Fixed IO 2 year rate cut by 10 basis points to 2.99% p.a. (3.13% p.a. comparison rate)
- Fixed IO 3 year rate cut by 10 basis points to 2.99% p.a (3.12% p.a. comparison rate)
UniBank, Teachers Mutual Bank slash fixed rates
UniBank and Teachers Mutual Bank, two related companies, have both cut their fixed investment and owner-occupier rates by as much as 102 basis points, with a few increases.
The changes seen below apply to both lenders:
For owner-occupiers:
- Fixed rate 2 year P&I increased by 10 basis points to 2.98% p.a. (4.36% p.a. comparison rate)
- Fixed rate 3 year P&I cut by 30 basis points to 2.98% p.a. (4.23% p.a. comparison rate)
- Fixed rate 4 year P&I cut by 51 basis points to 3.28% p.a. (4.21% p.a. comparison rate)
- Fixed rate 5 year P&I cut by 51 basis points to 3.28% p.a. (4.11% p.a. comparison rate)
- Standard fixed rate 1 year IO cut by 74 basis points to 3.45% p.a. (4.70% p.a. comparison rate)
- Standard fixed rate 2 year IO cut by 64 basis points to 3.45% p.a. (4.59% p.a. comparison rate)
- Standard fixed rate 3 year IO cut by 54 basis points to 3.45% p.a. (4.48% p.a. comparison rate)
- Standard fixed rate 5 year IO cut by 75 basis points to 3.75% p.a. (4.42% p.a. comparison rate)
For investors:
- Fixed rate 1 year P&I cut by 10 basis points to 3.28% p.a. (4.68% p.a. comparison rate)
- Fixed rate 3 year P&I cut by 7 basis points to 3.28% p.a. (4.43% p.a. comparison rate)
- Fixed rate 4 year P&I cut by 37 basis points to 3.68% p.a. (4.34% p.a. comparison rate)
- Fixed rate 5 year P&I cut by 37 basis points to 3.68% p.a. (4.28% p.a. comparison rate)
- Fixed rate 1 year IO cut by 102 basis points to 3.47% p.a. (4.70% p.a. comparison rate)
- Fixed rate 2 year IO cut by 101 basis points to 3.47% p.a. (4.59% p.a. comparison rate)
- Fixed rate 3 year IO cut by 52 basis points to 3.47% p.a. (4.48% p.a. comparison rate)
- Fixed rate 5 year IO cut by 101 basis points to 3.78% p.a. (4.42% p.a. comparison rate)
Other key changes
Large lenders Suncorp and AMP have decreased packaged investment and owner-occupier loans by up to 20 and 15 basis points respectively. Sydney Mutual Bank cut many different home loan products by as much as 95 basis points, with the largest change applying to fixed products.
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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