Loans.com.au, Tic:Toc, Suncorp, ME, Heritage Bank, cut fixed home loan rates

Emma Duffy By on August 9, 2019
transactional
 
fixed rate cuts

Photo by Helena Lopes on Unsplash

While the Reserve Bank of Australia (RBA) decided to keep the cash rate steady at its recent meeting, that hasn’t stopped a number of lenders from cutting their fixed home loan rates.

It’s been over a month since the RBA cut the official cash rate to 1.00%, but the rate cuts keep coming.

A number of lenders, including loans.com.au, have recently slashed a number of fixed rate home loans for owner occupiers and investors by up to 85 basis points.

Tic:Toc fixed rate cuts

Online lender Tic:Toc has announced fixed rate cuts of up to 85 basis points across a number of its investor and owner occupier home loans.

Among the largest rate reductions, the Live-in Fixed 3-year rate for owner occupiers making principal and interest repayments was slashed by 85 basis points to 2.99% p.a. (3.09% p.a. comparison rate*).

Meanwhile, changes to Tic:Toc’s Investment fixed home loan, effective from 9 August, are as follows:

  • One-year fixed principal and interest rates have been reduced by 75 basis points to 3.09% p.a. (3.34% p.a. comparison rate*)
  • Three-year fixed principal and interest rates have been reduced by 80 basis points to 3.09% p.a. (3.34% p.a. comparison rate*)
  • One-year fixed interest only rates have been reduced by 79 basis points to 3.25% p.a. (3.33% p.a. comparison rate*)
  • Three-year fixed interest only rates have been reduced by 74 basis points to 3.25% p.a. (3.33% p.a. comparison rate*)

Looking for a low variable rate home loan? The table below displays owner occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks. 

Company Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
Purchase or Refi, P&I 80% Smart Home Loan 3.03% 3.05% $1,693 More details
Real Deal P&I Special Offer 90% 150k+ 3.15% 3.16% $1,718 More details
Base Variable Rate P&I Special Offer <80% 3.35% 3.39% $1,763 More details
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
Purchase or Refi, P&I 80% Smart Home Loan
3.03% 3.05% $1,693
More details
Real Deal P&I Special Offer 90% 150k+
3.15% 3.16% $1,718
More details
Base Variable Rate P&I Special Offer <80%
3.35% 3.39% $1,763
More details

*Data accurate as at 2 August 2019. See disclaimer. This table shows (at the time of writing) some of the sharpest rates on offer from the big 4, the top 10 customer-owned institutions (e.g. not-for-profits, credit unions etc.) and the larger non-banks (for their variable, P&I, owner-occupier, non-honeymoon home loans with a loan amount of $400,000).

ME Bank fixed rate cuts

ME Bank has made a number of changes to its range of fixed rate home loans this week, most notably slashing 3-year fixed rates to a historic low for the bank.

The bank announced a 40 basis point reduction to its three-year fixed home loan for owner occupiers to 3.18% p.a. (3.87% p.a. comparison rate*) – the lowest rate ever offered by the bank, according to ME.

Suncorp fixed rate cuts

Suncorp Bank reduced fixed rates across a range of home loan offerings.

The Queensland-based lender cut its two and three-year fixed rates across its owner occupier loans.

Fixed rate cuts for owner occupiers:

  • Two-year fixed principal and interest Home Package Plus Special Offer have been reduced by 20 basis points to 3.09% p.a. (3.90% p.a. comparison rate*)
  • Three-year fixed principal and interest Home Package Plus Special Offer have been reduced by 20 basis points to 2.99% p.a. (3.84% p.a. comparison rate*)

Heritage Bank fixed rate cuts

Heritage Bank this week cut fixed rates on its home loans by up to 30 basis points.

  • Two-year fixed Residential have been reduced by 30 basis points to 3.14% p.a. (4.67% p.a. comparison rate*)
  • Three-year fixed Residential have been reduced by 30 basis points to 3.19% p.a. (4.55% p.a. comparison rate*)
  • Two-year fixed Home Advantage Residential have been reduced by 30 basis points to 3.14% p.a. (3.75% p.a. comparison rate*)
  • Three-year fixed Home Advantage Residential have been reduced by 30 basis points to 3.19% p.a. (3.74% p.a. comparison rate*)

Loans.com.au fixed rate cuts

In case you missed it, online lender Loans.com.au cut fixed home loan rates at the start of August by up to 60 basis points.

Their Fixed Home Loan 3-year rate for owner occupiers making interest only repayments was slashed by a big 60 basis points to 3.54% p.a. (3.51% p.a. comparison rate*).

Meanwhile, the Fixed Home Loan 3-year fixed term rate for investors was trimmed by 55 basis points to 3.79% p.a. (3.83% p.a. comparison rate*).

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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 2018. 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 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers’ products may not be available in all states.

In the interests of full disclosure, Savings.com.au 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 includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.

Emma Duffy
Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand.
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