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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL 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%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 June 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

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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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