IMB, BOQ and others slash home loan interest rates

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on February 26, 2021
IMB, BOQ and others slash home loan interest rates

It was a busy week of rate changes for challenger lenders, with IMB, BOQ, Bank of Us, Hume Bank, and Yard slashing home loan rates by up to 59 basis points.

IMB rate changes

Earlier in the week, some of IMB's rate changes came into effect, cutting by up to 20 basis points. Some key home loans to receive a haircut were: 

  • Residential Fixed P&I 5 Years: 20 basis point cut to 2.39% p.a. (2.83% p.a. comparison rate*)
  • Budget Home Loan P&I 80%: 3 basis point cut to 2.58% p.a. (2.64% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years: 15 basis point cut to 2.49% p.a. (3.36% 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

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Rates correct as of January 28, 2022. View disclaimer.

BOQ rate changes

Bank of Queensland cut rates on a few home loans for investors, including:

  • Intro Rate Variable Investment 80%: 25 basis point cut to 2.84% p.a. (3.34% p.a. comparison rate*)
  • Intro Rate Variable Investment 90%: 10 basis point cut to 3.14% p.a. (3.39% p.a. comparison rate*)
  • Intro Rate Variable Investment IO 80%: 20 basis point cut to 2.99% p.a. (3.37% p.a. comparison rate*)
  • Intro Rate Variable Investment IO 90%: 10 basis point cut to 3.24% p.a. (3.41% p.a. comparison rate*)

Note as the name implies, these are two-year introductory rates. After the intro period ends, the advertised rate increases by between 3 and 43 basis points, depending on the home loan.

Bank of Us rate changes

The Tasmania-based lender made quite a few cuts, including one home loan by 59 basis points. Some key rate changes were:

  • OO FlexiDiscount 95%: 59 basis point cut to 3.10% p.a. (3.16% p.a. comparison rate*))
  • OO FlexiDiscount Fixed 1 Year 80%: 10 basis point cut to 2.19% p.a. (2.51% p.a. comparison rate*)
  • Inv FlexiChoice 1 Year 80%: 30 basis point cut to 2.69% p.a. (4.59% p.a. comparison rate*)

Hume Bank rate changes

Hume Bank cut many home loans by between 10 and 30 basis points. Some key ones were:

  • Residential Fixed 4 Years P&I: 10 basis point cut to 2.09% p.a. (3.50% p.a. comparison rate*)
  • Residential Fixed 4 Years P&I: 10 basis point cut to 2.39% p.a. (3.34% p.a. comparison rate*)
  • Flexi Low Rate 70% Special Offer: 20 basis point cut to 2.09% p.a. (2.09% p.a. comparison rate*)

Note with the last one, as it's a special offer, the offer can be withdrawn at any time.

Hume Bank is distinct in the market in that it is one of the only lenders to offer a home loan under 2% for building a home, called the 'HomeBuilder' loan.

Yard rate changes

The online non-bank lender cut a couple of investment home loans, including:

  • Investor Home Loan P&I 80%: 22 basis point cut to 2.45% p.a. (2.48% p.a. comparison rate*)
  • Investor Home Loan IO 80%: 15 basis point cut to 2.84% p.a. (2.93% p.a. comparison rate*)

Home lending surges in 2020 but investor lending is down 

The latest financial aggregates data from the Reserve Bank show strong growth in housing lending throughout 2020, up 3.6% in the year to January 2021 and 0.4% in just one month. 

Much of this growth was driven by owner-occupied home loans, which grew by almost 6% to $1.22 trillion (seasonally adjusted). 

Investment lending on the other hand struggled, falling by 0.17% over the year to around $665 billion. 

The total value of home loans in Australia is now around $1.88 trillion.


Photo by Peter Idowu 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. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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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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