Hume Bank, Adelaide Bank dish out home loan rate cuts

author-avatar By on December 18, 2020
Hume Bank, Adelaide Bank dish out home loan rate cuts

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.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details
ONLY A 5% DEPOSIT REQUIRED

Fixed Rate Home Loan (Principal and Interest) 2 Years

ONLY A 5% DEPOSIT REQUIRED
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES
FixedMore details
ONLY A 5% DEPOSIT REQUIRED

Fixed Rate Home Loan (Principal and Interest) 3 Years

ONLY A 5% DEPOSIT REQUIRED

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. Rates correct as of September 25, 2021. 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.


Photo by RealKina 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): Great Southern Bank, 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.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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