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

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

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.

By Harrison Astbury

First published on 07 Feb 2020

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

Photo by Andreas Brücker on Unsplash

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Keep in mind that 'Discount' rate offers can be withdrawn at anytime - in BOQ's case, discounts are anywhere from 0.75% to 1.30% p.a.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

Loan purpose

Loan amount

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.54% p.a.	5.58% p.a.	$2,852	Principal & Interest	Variable	$0	$530	90%	Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.49% p.a.	5.40% p.a.	$2,836	Principal & Interest	Variable	$0	$0	80%	Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	No application or ongoing fees. Annual rate discount Unlimited redraws & additional repayments. LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	More details	Compare	Promoted	Disclosure
Ubank	Ubank Flex variable home loan - 100% offset	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable	$250	$250	60%	100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	Disclosure
Macquarie Bank	Macquarie Bank Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable	$248	$350	60%	Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Check your eligibility in as little as one minute	More details	Compare		Disclosure

Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Important Information and Comparison Rate Warning

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Harrison Astbury

Harrison is Savings.com.au's Assistant Editor, and also Editor & Research Analyst of sister comparison site InfoChoice.com.au. He is also the co-host of the Savings Tip Jar podcast alongside Dominic Beattie. Prior to joining the group in 2020, Harrison has since 2015 been lending his expertise to other publications in mining, financial comparison, and traditional newspaper media.

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Comparison Rate Warning and Base Criteria

For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*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.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

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.

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

AMP