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

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Keep in mind that 'Discount' rate offers can be withdrawn at anytime - in BOQ's case, discounts are anywhere from 0.75% to 1.30% p.a.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

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayment
 
Fixed 2 Years 70% LVR
2.19% 2.56% $1,517 Go to site
2.59% 2.55% $1,599 Go to site
Budget Home Loan OO P&I
2.68% 2.74% $1,618 Go to site

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 03 August 2020. 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 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
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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