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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Fixed Rate Investment Loan (Principal and Interest) 1 Year

FixedMore details

Fixed Rate Investment Loan 3 Years (LVR < 80%)

FixedMore 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 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. Rates correct as of October 19, 2021. 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 2020. They are (in descending order): Great Southern Bank, 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 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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, Performance Drive 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 is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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