Home News Lenders cut home loan rates in anticipation of RBA decision

Lenders cut home loan rates in anticipation of RBA decision

A wide range of lenders - mainly regional - cut interest rates in the past few days in the lead up to a Reserve Bank decision next Tuesday.

By Harrison Astbury

First published on 02 Oct 2020

Lenders cut home loan rates in anticipation of RBA decision

Photo by Tommy Pequinot on Unsplash

While Westpac revised its cash rate forecast to expect a cut in November, many lenders have cut their home loan rates by between 6 and 35 basis points in the past few days.

Notably, Pacific Mortgage Group also introduced a 1.99% p.a. variable home loan rate (1.99% p.a. comparison rate*).

It's for owner-occupiers paying principal & interest with a maximum LVR of 60% - directed at those with either a large deposit or those refinancing.

This makes Pacific Mortgage Group the 12th lender in Savings.com.au's research to cut below the 2.00% advertised rate threshold.

More rate changes are below.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Loan purpose

Loan amount

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.54% p.a.	5.58% p.a.	$2,852	Principal & Interest	Variable	$0	$530	90%	Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.49% p.a.	5.40% p.a.	$2,836	Principal & Interest	Variable	$0	$0	80%	Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	No application or ongoing fees. Annual rate discount Unlimited redraws & additional repayments. LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	More details	Compare	Promoted	Disclosure
Ubank (part of NAB)	Ubank (part of NAB) Flex variable home loan - 100% offset	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable	$250	$250	60%	100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	Disclosure
Macquarie Bank	Macquarie Bank Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable	$248	$350	60%	Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Check your eligibility in as little as one minute	More details	Compare		Disclosure

Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Important Information and Comparison Rate Warning

Compare More Home Loans

Adelaide Bank

Adelaide Bank cut a wide range of home loans, mainly for investors, but with a few 'SmartSaver' owner-occupier loans sprinkled in. Some key cuts are below:

Investment SmartFix P&I 4 Years: 20 basis point cut to 2.94% p.a. (3.23% p.a. comparison rate*)
OO SmartFix P&I 4 Years: 20 basis point cut to 2.64% p.a. (2.94% p.a. comparison rate*)

A range of other fixed term home loans paying both P&I and interest-only (IO) were also cut.

BankVic

Yesterday, BankVic made a wide array of home loan cuts by between 11 and 35 basis points. Some key cuts were:

Premium Home Fixed 3 Years: 35 basis point cut to 2.15% p.a. (3.66% p.a. comparison rate*)
Fixed 3 Years: 35 basis point cut to 2.25% p.a. (3.53% p.a. comparison rate*)

These rates are for owner-occupiers, with the 'Premium' line being a packaged home loan.

Athena

A few days ago, non-bank lender Athena made some cuts by between 5 and 15 basis points. Some of the rate changes were:

Liberate Investor P&I 70-80% LVR: 15 basis point cut to 2.79% p.a. (2.74% p.a. comparison rate*)
Liberate Owner-Occupier P&I 70-80% LVR: 10 basis point cut to 2.44% p.a. (2.38% p.a. comparison rate*)

These home loans are on Athena's tiered rate system, which automatically puts borrowers onto lower rates as they pay down their home loan.

Hunter United

Hunter United cut one home loan today, its two-year fixed home loan for owner-occupiers paying P&I.

It received a 20 basis point cut down to 2.19% p.a. (2.71% p.a. comparison rate*)

IMB

IMB also made a 20 basis point cut on its residential fixed loan for two years paying P&I.

It is now down to 2.19% p.a. (3.10% p.a. comparison rate*)

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Harrison Astbury

Harrison is Savings.com.au's Assistant Editor, and also Editor & Research Analyst of sister comparison site InfoChoice.com.au. He is also the co-host of the Savings Tip Jar podcast alongside Dominic Beattie. Prior to joining the group in 2020, Harrison has since 2015 been lending his expertise to other publications in mining, financial comparison, and traditional newspaper media.

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For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*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.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

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.

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