BOQ, Credit Union SA slash home loan rates by up to 106bps

author-avatar By on August 28, 2020
BOQ, Credit Union SA slash home loan rates by up to 106bps

Photo by Angus Gray on Unsplash

This week, Bank of Queensland and Credit Union SA cut some home loan interest rates, with one home loan slashed by 106 basis points.

The 106 basis point cut was made by Credit Union SA, on its Investment Variable Rate Home Loan, paying principal and interest (P&I), and is a discounted special offer.

The rate is now 2.59% p.a (2.69% p.a. comparison rate*).

The corresponding interest-only (IO) loan was also cut by 66 basis points, down to 3.19% p.a. (3.21% p.a. comparison rate*)

 Meanwhile, BOQ also made a few cuts, including:

  • Residential Fixed 5 Years Discount 80%: 45 basis point cut to 2.54% p.a. (3.34% p.a. comparison rate*)
  • Investment Fixed 5 Years Discount 80%: 25 basis point cut to 2.74% p.a. (3.52% p.a. comparison rate*)

Note that special offers and discounts can be withdrawn at any time.

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.

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

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 28, 2021. View disclaimer.

Other BOQ and Credit Union SA changes

The party didn't stop there, with both lenders changing rates on a variety of other loans. 

Credit Union SA raised rates on a couple of loans, including:

  • Fixed Package 2 Years P&I Package Special: 20 basis point rise to 2.39% p.a. (3.55% p.a. comparison rate*)
  • Fixed Package 3 Years P&I Package Special: 20 basis point rise to 2.39% p.a. (3.48% p.a. comparison rate*)

Note these are still under the 'special offer' moniker, and are for owner-occupiers paying P&I on a home loan package.

BOQ also cut its three-year fixed residential home loan as a discounted rate, for owner-occupiers paying P&I with a maximum LVR of 80%.

The rate was cut by 10 basis points and now stands at 2.25% p.a. (3.41% p.a. comparison rate*).

See Also: The Lenders Offering Home Loans Under 2.00%

ME Bank cuts to 'lowest ever'

Today, ME Bank cut its variable basic owner-occupier loans down to its 'lowest levels ever':

  • Basic Owner Occupier P&I <80%: 59 basis point cut to 2.58% p.a. (2.60% p.a. comparison rate*)
  • Basic Owner Occupier P&I <95%: 53 basis point cut to 2.99% p.a. (3.01% p.a. comparison rate*)

These rates are for minimum loan amounts of $150,000.

ME's general manager of home lending Andrew Bartolo said the no-frills rates deliver "exactly what many Australians want".

"ME’s Basic Home Loan is already very simple, with no frills or fancy features and no ongoing account keeping fees," he said.

The new rates are eligible for new and refinancing customers applying on 28 August and later. 

Compared to other owner occupier loans, as seen in the table above, ME's cuts now bring it in line with some of the most competitive loans in the market.


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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