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

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Note that special offers and discounts can be withdrawn at any time.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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL 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%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • 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
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

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 May 18, 2022. 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. 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.

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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.

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