Challenger banks' home loan rates get a haircut ahead of RBA decision

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.

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Note these are 'promo' rates and could be withdrawn at any time.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.

Latest Articles

• How to start investing for millennials January 21, 2022
• One in five Millennials and Gen Z want to start their own business January 21, 2022
• RBA cash rate hike could come as soon as August: Westpac January 21, 2022
• Australians lost a record $323 million to scams in 2021 January 21, 2022
• ANZ slices variable rates, Westpac serves up fixed home loan rate increases January 21, 2022