Photo by Edgar Chaparro on Unsplash
Ahead of the Reserve Bank's cash rate decision next week, numerous challenger banks have cut home loan interest rates, with one cut by 125 basis points.
The Reserve Bank's (RBA) cash rate decision next Tuesday is widely tipped to be a slight cut from 25 basis points down to 10 basis points.
Throughout the past week, a few challenger brands have slashed home loan interest rates.
Gateway Bank cut its Construction Loan by 125 basis points down to 3.23% p.a. (3.29% p.a. comparison rate*).
Australian Unity cut numerous home loans, but most noteworthy was its 'Health Wealth Happiness' package home loan, fixed for one year paying P&I, cut by 20 basis points down to 2.24% p.a. (3.13% p.a. comparison rate*).
People's Choice Credit Union cut its residential 1 year fixed loan paying P&I, among others, by 25 basis points down to 2.29% p.a. (4.44% p.a. comparison rate*).
More rate cuts 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.
Lender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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| Variable | More details | ||||||||||||
| FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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| Variable | More details | ||||||||||||
| NSW/VIC/SA METRO & INNER REGIONAL AREAS | Variable Home Loan (Principal and Interest)
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Variable Home Loan (Principal and Interest)
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| Variable | More details | ||||||||||||
| REFINANCE ONLY | Variable Rate Home Loan – Refinance Only
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Variable Rate Home Loan – Refinance Only
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| Variable | More details | ||||||||||||
| NO ONGOING FEESFREE REDRAW FACILITY | Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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- 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%
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 June 27, 2022. View disclaimer.
ME Bank also cut a couple of home loan rates, including its variable 'Flexible Member Package' home loan for owner occupiers paying P&I with a maximum LVR of 80%.
For those borrowing $700,000 or more, the rate was cut by 10 basis points down to 2.69% p.a. (3.14% p.a. comparison rate*).
QBANK cut its 'Classic Offer' with a maximum LVR of 80% by 5 basis points down to 2.69% p.a. (2.72% p.a. comparison rate*)
Earlier in the week, Westpac-owned St. George and Bank of Melbourne also slashed some home loan rates.
Focusing on St. George, the biggest cuts came to interest-only loans.
For example, its Basic Variable loan with a maximum LVR of 60% paying IO, was cut by 85 basis points down to 3.09% p.a. (3.11% p.a. comparison rate*)
The corresponding home loan but paying P&I was cut by 10 basis points down to 2.49% p.a. (2.51% p.a. comparison rate*).
Note these are 'promo' rates and could be withdrawn at any time.
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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