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.

Lender

Fixed
More details

Fixed Rate Investment Loan (Principal and Interest) 1 Year

    Fixed
    More details

    Fixed Rate Investment Loan (Principal and Interest) 3 Years

      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 August 7, 2022. 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. 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.

      Latest Articles

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

      Collections:

      Be Savings smart.
      Subscribe for free money newsletters.

      By subscribing you agree
      to the Savings Privacy Policy