Put that lobster down! Finance never sleeps (just kidding - it really does sleep). This is our last rate wrap of the year, so enjoy.
It was a quiet week for rate changes, with Hume Bank and Adelaide Bank some of the only lenders to cut home loan rates.
Adelaide Bank made cuts by up to 24 basis points on some interest-only (IO) variable products:
- Inv SmartSaver IO 80%: Down to 2.99% p.a. (2.71% p.a. comparison rate*)
- SmartSaver IO 80%: Down to 2.99% p.a. (2.90% p.a. comparison rate*)
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
|Advertised rate||Comparison rate*||Monthly repayment||Rate Type||Offset||Redraw||Ongoing Fee||Upfront Fees||LVR||Lump Sum Repayment||Additional Repayments||Pre-approval|
|No ongoing feesFree redraw facility|| |
Live-in Fixed Loan (Principal and Interest) 1 Year
|NO UPFRONT OR ONGOING FEES|| |
Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years
Fixed Rate Home Loan (Principal and Interest) 3 Years
Tailored Home Loan Fixed (Interest Only in Advance) 2 Years
Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%)
Fixed Rate Home Loan (Interest Only) 4 Years (LVR > 80%)
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 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 January 21, 2022. View disclaimer.
Meanwhile, Hume Bank cut a wide variety of home loans by up to 20 basis points, including the residential loan, fixed for two years paying principal & interest (P&I).
That loan is down to 2.19% p.a. (3.51% p.a. comparison rate*).
Some other notable rate changes from Hume Bank included:
- Residential Fixed P&I 3 Years: Cut by 10 basis points to 2.19% p.a. (3.39% p.a. comparison rate*)
- Investment Fixed P&I 1 Year: Cut by 10 basis points to 2.49% p.a. (4.12% p.a. comparison rate*)
- Investment Flexi Low Rate 70% 'Special Offer': Cut by 10 basis points to 2.79% p.a. (2.79% p.a. comparison rate*)
- Investment Fixed P&I 4 Years: Cut by 20 basis points to 2.99% p.a. (3.87% p.a. comparison rate*)
Hume Bank also has two home loans under 2%.
For owner-occupiers who have a 70% LVR (i.e. a 30% deposit), the two-year fixed rate is 1.99% p.a. (3.48% p.a. comparison rate*).
In addition, Hume Bank is distinct in that it is one of the only lenders to have a construction 'HomeBuilder' loan under 2% p.a.
That loan is 1.99% p.a. (3.34% p.a. comparison rate*).
However, the loan is subject to strict location guidelines - borrowers must be within a 150km radius of the Albury Post Office in NSW.
Construction contracts must also be finalised before 31 December.