Three lenders cut rates on home loans despite RBA cash rate hold

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on February 07, 2020
Three lenders cut rates on home loans despite RBA cash rate hold

Photo by Andreas Brücker on Unsplash

One bank cut rates by as much as 20 basis points, even after the Reserve Bank left the cash rate on hold at 0.75% on Tuesday.

Three main lenders cut rates on their home loans in the last week, including AMP, Bank of Queensland and Greater Bank, with one cutting by as much as 20 basis points. 

The news comes after the Reserve Bank decided to hold the cash rate at 0.75% on Tuesday, following positive employment data and steady inflation.

AMP

AMP cut rates on one of its home loan products.

  • Professional Package Variable P&I 750k+: 4 basis point cut to 3.05% p.a. (3.45% p.a. comparison rate*)

Bank of Queensland

BOQ cut rates across a few different fixed residential home loans.

Package home loans

  • Home Loan Privileges Residential Fixed 3yrs Discount 150k+: 20 basis point cut to 2.99% p.a. (3.99% p.a. comparison rate*)
  • Home Loan Privileges Residential Fixed 3yrs Discount 300k+: 20 basis point cut to 2.79% p.a. (3.94% p.a. comparison rate*)
  • Home Loan Privileges Residential Fixed 2yrs Discount 150k+: 10 basis point cut to 2.99% p.a. (4.05% p.a. comparison rate*)
  • Home Loan Privileges Residential Fixed 2yrs Discount 300k+: 10 basis point cut to 2.79% p.a. (4.01% p.a. comparison rate*)

Non-package home loans

  • Residential Fixed 3yrs Discount 150k+: 20 basis point cut to 2.99% p.a. (3.72% p.a. comparison rate*)
  • Residential Fixed 3yrs Discount 300k+: 20 basis point cut to 2.79% p.a. (3.67% p.a. comparison rate*)
  • Residential Fixed 2yrs Discount 150k+: 10 basis point cut to 2.99% p.a. (3.78% p.a. comparison rate*)
  • Residential Fixed 2yrs Discount 300k+: 10 basis point cut to 2.79% p.a. (3.75% p.a. comparison rate*)
  • Intro Rate Variable P&I 2yr Fixed: 10 basis point cut to 3.19% p.a. (3.80% p.a. comparison rate*)

Keep in mind that 'Discount' rate offers can be withdrawn at anytime - in BOQ's case, discounts are anywhere from 0.75% to 1.30% p.a.

Introductory rates usually feature a lower rate for X number of years then revert to a higher rate - in BOQ's case its Intro base rate is 3.19% p.a. for two years, then reverts to a base rate of 3.76% p.a, for an overall comparison rate of 3.80% p.a.

Greater Bank

Greater Bank made a variety of cuts to its fixed home loans, for both owner occupiers and investors.

Owner Occupier

  • Great Rate Fixed 2yrs: 8 basis point cut to 2.89% p.a. (3.74% p.a. comparison rate*)
  • Great Rate Fixed 3yrs: 8 basis point cut to 2.89% p.a. (3.66% p.a. comparison rate*)
  • Ultimate Fixed 2yrs 150k+: 8 basis point cut to 2.89% p.a. (3.98% p.a. comparison rate*)
  • Ultimate Fixed 3yrs 150k+: 8 basis point cut to 2.89% p.a. (3.91% p.a. comparison rate*)

Investment

  • Great Rate Fixed 2yrs: 13 basis point cut to 3.14% p.a. (4.09% p.a. comparison rate*)
  • Great Rate Fixed 3yrs: 13 basis point cut to 3.14% p.a. (4.00% p.a. comparison rate*)
  • Ultimate Fixed 2yrs: 13 basis point cut to 3.14% p.a. (4.32% p.a. comparison rate*)
  • Ultimate Fixed 3yrs: 13 basis point cut to 3.14% p.a. (4.25% p.a. comparison rate*)

Looking to compare low-rate, variable owner-occupier home loans? Below are a handful of low-rate loans in the market.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • 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%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 26, 2022. View disclaimer.


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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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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