Hume Bank, Summerland Credit Union, ME Bank cut home loan rates

author-avatar By on February 28, 2020
Hume Bank, Summerland Credit Union, ME Bank cut home loan rates

Photo by Robert Bye on Unsplash

Customer-owned institutions led the charge this week in cutting rates on home loans, with one cutting by as much as 25 basis points.

The biggest rate cut was by Hume Bank, which cut rates on two of its interest-only investment loans by as much as 25 basis points. 

A fairly large number of rate cuts were seen in the past week, after ANZ and Commonwealth Bank cut rates recently.

Cuts were made in the past week to both interest only (IO) and principal and interest (P&I) payment terms, for both owner-occupiers and investors.

BCU

Bananacoast Credit Union gave some love to fixed loans, both for owner-occupiers and investors.

Residential

  • Fixed P&I 2 years: 4 basis point cut to 2.91% p.a. (4.12% p.a. comparison rate*)
  • Fixed P&I 3 years: 6 basis point cut to 2.93% p.a. (4.01% p.a. comparison rate*)
  • Fixed P&I 4 years: 5 basis point cut to 3.20% p.a. (3.99% p.a. comparison rate*)
  • Fixed P&I 5 years: 13 basis point cut to 3.26% p.a. (3.93% p.a. comparison rate*)

Investment

  • Fixed P&I 2 years: 4 basis point cut to 3.04% p.a. (4.12% p.a. comparison rate*)
  • Fixed P&I 3 years: 6 basis point cut to 3.06% p.a. (4.01% p.a. comparison rate*)
  • Fixed P&I 4 years: 5 basis point cut to 3.33% p.a. (3.99% p.a. comparison rate*)
  • Fixed P&I 5 years: 13 basis point cut to 3.39% p.a. (3.93% p.a. comparison rate*)

Summerland Credit Union

Summerland also gave some love to its fixed home loans for both owner-occupiers and investors.

  • Standard Fixed 1 year: 10 basis point cut to 3.09% p.a. (4.72% p.a. comparison rate*)
  • Standard Fixed 2 years: 10 basis point cut to 3.09% p.a. (4.59% p.a. comparison rate*)
  • Standard Fixed 4 years: 10 basis point cut to 3.39% p.a. (4.46% p.a. comparison rate*)
  • Standard Fixed 5 years: 10 basis point cut to 3.39% p.a. (4.38% p.a. comparison rate*)
  • Investment Standard Fixed 1 year: 20 basis point cut to 3.39% p.a. (5.17% p.a. comparison rate*)
  • Investment Standard Fixed 2 years: 20 basis point cut to 3.39% p.a. (5.03% p.a. comparison rate*)
  • Investment Standard Fixed 3 years: 20 basis point cut to 3.19% p.a. (4.85% p.a. comparison rate*)
  • Investment Standard Fixed 4 years: 20 basis point cut to 3.59% p.a. (4.84% p.a. comparison rate*)
  • Investment Standard Fixed 5 years: 20 basis point cut to 3.59% p.a. (4.74% p.a. comparison rate*)

Looking to compare fixed investment loans? Below are some of the lowest rates in the market.

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 

Base criteria of: a $400,000 loan amount, fixed, principal & interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the product provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 01 July 2020. View disclaimer.

Hume Bank

Hume Bank made cuts to both package and non-packaged fixed home loans by as much as 25 basis points. Get ready for the big enchilada: 

Investment Package

  • Property Package P&I Fixed 1 year: 20 basis point cut to 3.49% p.a. (4.98% p.a. comparison rate*)
  • Property Package P&I Fixed 2 years: 11 basis point cut to 3.24% p.a. (4.79% p.a. comparison rate*)
  • Property Package P&I Fixed 3 years: 11 basis point cut to 3.24% p.a. (4.64% p.a. comparison rate*)
  • Property Package P&I Fixed 4 years: 20 basis point cut to 3.69% p.a. (4.65% p.a. comparison rate*)
  • Property Package P&I Fixed 5 years: 20 basis point cut to 3.69% p.a. (4.46% p.a. comparison rate*)
  • Property Package IO Fixed 1 year: 25 basis point cut to 3.69% p.a. (5.00% p.a. comparison rate*)
  • Property Package IO Fixed 2 years: 20 basis point cut to 3.44% p.a. (4.83% p.a. comparison rate*)
  • Property Package IO Fixed 3 years: 20 basis point cut to 3.44% p.a. (4.70% p.a. comparison rate*)
  • Property Package IO Fixed 4 years: 20 basis point cut to 3.89% p.a. (4.72% p.a. comparison rate*)
  • Property Package IO Fixed 5 years: 20 basis point cut to 3.89% p.a. (4.64% p.a. comparison rate*)

Investment Non-Package

  • Investment Fixed P&I 1 year: 20 basis point cut to 3.59% p.a. (5.08% p.a. comparison rate*)
  • Investment Fixed P&I 2 years: 11 basis point cut to 3.34% p.a. (4.89% p.a. comparison rate*)
  • Investment Fixed P&I 3 years: 11 basis point cut to 3.34% p.a. (4.74% p.a. comparison rate*)
  • Investment Fixed P&I 4 years: 20 basis point cut to 3.79% p.a. (4.75% p.a. comparison rate*)
  • Investment Fixed P&I 5 years: 20 basis point cut to 3.79% p.a. (4.56% p.a. comparison rate*)
  • Investment Fixed IO 1 year: 25 basis point cut to 3.79% p.a. (5.10% p.a. comparison rate*)
  • Investment Fixed IO 2 years: 20 basis point cut to 3.54% p.a. (4.93% p.a. comparison rate*)
  • Investment Fixed IO 3 years: 20 basis point cut to 3.54% p.a. (4.80% p.a. comparison rate*)
  • Investment Fixed IO 4 years: 20 basis point cut to 3.99% p.a. (4.82% p.a. comparison rate*)
  • Investment Fixed IO 5 years: 20 basis point cut to 3.99% p.a. (4.74% p.a. comparison rate*)

Residential Package

  • Property Package P&I Fixed 1 year: 20 basis point cut 3.14% p.a. (4.41% p.a. comparison rate*)
  • Property Package P&I Fixed 2 years: 6 basis point cut to 2.96% p.a. (4.26% p.a. comparison rate*)
  • Property Package P&I Fixed 3 years: 6 basis point cut to 2.96% p.a. (4.13% p.a. comparison rate*)
  • Property Package P&I Fixed 4 years: 15 basis point cut to 3.44% p.a. (4.18% p.a. comparison rate*)
  • Property Package P&I Fixed 5 years: 15 basis point cut to 3.44% p.a. (4.21% p.a. comparison rate*)
  • Property Package IO Fixed 1 year: 6 basis point cut to 3.99% p.a. (4.49% p.a. comparison rate*)
  • Property Package IO Fixed 4 years: 21 basis point cut to 4.09% p.a. (4.40% p.a. comparison rate*)
  • Property Package IO Fixed 5 years: 21 basis point cut to 4.09% p.a. (4.37% p.a. comparison rate*)

Residential Non-Package

  • Residential Fixed P&I 1 year: 20 basis point cut to 3.24% p.a. (4.51% pa. comparison rate*)
  • Residential Fixed P&I 2 years: 6 basis point cut to 3.06% p.a. (4.36% p.a. comparison rate*)
  • Residential Fixed P&I 3 years: 6 basis point cut to 3.06% p.a. (4.23% p.a. comparison rate*)
  • Residential Fixed P&I 4 years: 15 basis point cut to 3.54% p.a. (4.28% p.a. comparison rate*)
  • Residential Fixed P&I 5 years: 15 basis point cut to 3.54% p.a. (4.21% p.a. comparison rate*)
  • Residential Fixed IO 1 year: 6 basis point cut to 4.09% p.a. (4.59% p.a. comparison rate*)
  • Residential Fixed IO 4 years: 21 basis point cut to 4.19% p.a. (4.50% p.a. comparison rate*)
  • Residential Fixed IO 5 years:  21 basis point cut to 4.19% p.a. (4.47% p.a. comparison rate*)

ME Bank

ME Bank made cuts to both owner-occupier and investor loans by as much as 19 basis points.

  • Member Package Flexible Home Loan OO Max 80% LVR 400k+: 10 basis point cut to 3.09% p.a. (3.53% p.a. comparison rate*)
  • Member Package Flexible Home Loan OO Max 80% LVR 700k+: 10 basis point cut 3.04% p.a. (3.53% p.a. comparison rate*)
  • Member Package Inv Flexible Fixed 3 years: 19 basis point cut to 3.09% p.a. (3.97% p.a. comparison rate*)
  • Member Package Inv Flexible Home Loan Max 80% LVR 400k+: 15 basis point cut to 3.38% p.a. (3.81% p.a. comparison rate*)
  • Member Package Inv Flexible Home Loan Max 80% LVR 700k+: 10 basis point cut 3.38% p.a. (3.81% p.a. comparison rate*)

Arab Bank Australia

Arab Bank made several cuts to its owner-occupier home loans, with the biggest cut being 10 basis points.

  • The Basics Home Loan Lowest Rate Offer: 10 basis point cut to 2.95% p.a. (3.09% p.a. comparison rate*)
  • Essentials Home Loan Special Offer: 5 basis point cut to 3.00% p.a. (3.17% p.a. comparison rate*)
  • Residential Fixed 1 year: 5 basis point cut to 2.85% p.a. (3.64% p.a. comparison rate*)
  • Residential Fixed 2 years: 5 basis point cut to 2.85% p.a. (3.54% p.a. comparison rate*)

It should be noted that special offers could be withdrawn at any time.

Credit Union SA 

Credit Union SA cut the rate to its Variable Home Loan Package P&I as a Special Offer by 20 basis points to 2.89% p.a. (3.31% p.a. comparison rate*).


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 2019. 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. 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 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.

*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.

Latest Articles

author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

Collections:

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term

{{returnData.introductoryTerm}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A