Heritage, CUA, Auswide, Horizon slash home loan rates

author-avatar By on February 12, 2021
Heritage, CUA, Auswide, Horizon slash home loan rates

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.

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%. 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. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

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

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 2020. 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 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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, Performance Drive 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 an experienced journalist, 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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