Customer-owned banks cut big despite RBA hold

author-avatar By
on October 09, 2020
Customer-owned banks cut big despite RBA hold

Photo by Joshua Willson on Unsplash

Both Gateway Bank and CUA cut home loan interest rates yesterday, with one loan suite cut by 129 basis points.

For Gateway Bank, its residential fixed loans for two and three years were cut by 129 basis points, while some investment loans also got a sizeable haircut. Some further details are:

  • Residential Fixed 3 Years: 129 basis point cut to 2.59% p.a. (4.05% p.a. comparison rate*)
  • Investment Fixed 3 Years: 115 basis point cut to 2.99% p.a. (4.66% p.a. comparison rate*)

A range of packaged home loans were also cut, and Gateway Bank also cut a raft of variable loans just three weeks ago.

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 22, 2022. View disclaimer.

Meanwhile, CUA also made some changes but for variable home loans, in both the owner-occupier and investment spaces. Some key details are:

  • Achieve Variable OO P&I 250k+: 25 basis point cut to 2.55% p.a. (2.60% p.a. comparison rate*)
  • Achieve Variable Inv P&I 250k+: 25 basis point cut to 2.86% p.a. (2.91% p.a. comparison rate*)

The 'Achieve' line is a series of basic home loans with a limited offset account attached.

Both of these customer-owned institutions cut rates despite no changes to the Reserve Bank cash rate earlier in the week.

Elsewhere, it was a very subdued week for rate changes, with Macquarie the only other lender of note to make some cuts, albeit only by 10 basis points this morning.

In total, Macquarie applied the cuts to in excess of 40 individual home loans, with some of the highlights including:

  • Basic Variable OO P&I 60% LVR: Down to 2.49% p.a. (2.49% p.a. comparison rate*)
  • Basic Variable OO P&I 70% LVR: Down to 2.54% p.a. (2.54% p.a. comparison rate*)
  • Basic Variable Inv P&I 60% LVR: Down to 2.69% p.a. (2.69% p.a. comparison rate*)

In a note to brokers, Macquarie said it hopes these new rates and "industry-leading" processing times lead to "more opportunities and conversations with your clients". 


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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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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