It was another fairly busy week for customer-owned banks, as Heritage, CUA, and Auswide all cut home loan rates by up to 45 basis points.
Heritage Bank interest rate cuts
Heritage cut a wide variety of home loan interest rates by up to 19 basis points this week. Some of the key ones were:
- Home Advantage Investment Variable P&I <80% 150k+: 19 basis point cut to 2.99% p.a. (3.38% p.a. comparison rate*)
- Home Advantage Owner Occupier Variable 90% $700k+: 9 basis point cut to 2.99% p.a. (3.38% p.a. comparison rate*)
- DIscount Variable Owner Occupier P&I <80%: 9 basis point cut to 2.59% p.a. (2.64% p.a. comparison rate*)
This is how these lenders stack up among the wider owner occupier home loan market, as seen in the table below.
Lender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATURED | Variable Home Loan (LVR < 70%)
| ||||||||||||
Variable Home Loan (LVR < 70%)
| |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDREFINANCE ONLY | Variable Rate Home Loan – Refinance Only
| ||||||||||||
Variable Rate Home Loan – Refinance Only
| |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDAN EASY DIGITAL APPLICATION | Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
| ||||||||||||
Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
| |||||||||||||
| Variable | More details | ||||||||||||
| NO ONGOING FEES | Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%
| ||||||||||||
Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%
| |||||||||||||
- Min 30% deposit
- No monthly or ongoing fees, add 0.10% for offset
- Unlimited redraws
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 August 10, 2022. View disclaimer.
CUA interest rate cuts
CUA slashed a few home loans on the 'Accelerate' line for both investors and owner occupiers, all by 20 basis points.
- Accelerate Variable P&I: Down to 2.94% p.a. (2.99% p.a. comparison rate*)
- Accelerate Variable IO: Down to 3.44% p.a. (3.08% p.a. comparison rate*)
- Inv Accelerate Variable P&I: Down to 3.37% p.a. (3.42% p.a. comparison rate*)
- Inv Accelerate Variable IO: Down to 3.72% p.a. (3.56% p.a. comparison rate*)
CUA's changes come after it announced it would be renaming itself to 'Great Southern Bank'.
Auswide Bank interest rate cuts
Auswide Bank cut a wide variety of investor loans by up to 45 basis points. Some of the key ones were:
- Freedom Package Inv Variable IO 75%: 45 basis point cut to 2.99% p.a. (3.40% p.a. comparison rate*)
- Freedom Package Inv Fixed P&I 3 Years 75%: 30 basis point cut to 2.29% p.a. (4.10% p.a. comparison rate*)
- Basic Variable Investment Loan P&I 75%: 40 basis point cut to 2.59% p.a. (2.61% p.a. comparison rate*)
The 'Freedom Package' loans are discounted as a 'special offer', meaning the discounted rate could end at any time.
Horizon Bank interest rate cuts
Horizon Bank cut fixed home loans between one and three years for both owner occupiers and investors. They were all cut by 20 basis points. Some details are:
- 1 Year: Down to 2.19% p.a. (3.41% p.a. comparison rate*)
- 2 Years: Down to 2.19% p.a. (3.30% p.a. comparison rate*)
- 3 Years: Down to 2.19% p.a. (3.20% p.a. comparison rate*)
- Inv 1 Year: Down to 2.44% p.a. (3.66% p.a. comparison rate*)
- Inv 2 Years: Down to 2.44% p.a. (3.55% p.a. comparison rate*)
- Inv 3 Years: Down to 2.44% p.a. (3.45% p.a. comparison rate*)
These comparison rates are for borrowers paying P&I, borrowing up to 80% LVR (i.e. a 20% deposit).
Photo by Jaye Haych on Unsplash
