Which lenders cut home loan rates this week?

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on November 13, 2020
Which lenders cut home loan rates this week?

Photo by Pat Whelen on Unsplash

It was another busy week for rate cuts, with lenders on the chopping block including ING, Bendigo Bank, Bank of Queensland, and Aussie.

Headline rates for these four lenders include four-year fixed loans for owner-occupiers, up to 80% LVR paying principal & interest (P&I).

  • Aussie: 'Select Basic'  cut by 125 basis points down to 1.99% p.a. (2.39% p.a. comparison rate*)
  • ING: 'Orange Advantage' cut by 60 basis points down to 1.99% p.a. (3.43% p.a. comparison rate*)
  • BOQ: discounted rate cut by 55 basis points down to 1.99% p.a. (2.90% p.a. comparison rate*)
  • Bendigo Bank: 'Complete Home Loan' cut by 110 basis points down to 2.09% p.a. (2.82% p.a. comparison rate*)

The trend of cutting big for four-year fixed loans was started by big four banks CommBank, Westpac, and NAB after the Reserve Bank's cash rate cut last Tuesday.

As it stands, ANZ is yet to introduce a sub-2% home loan.

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
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
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 26, 2022. View disclaimer.

Two other banks cut home loans at the same time as giving their savings accounts a haircut as well.

UBank cut its savings account rate by 15 basis points to 1.31% p.a, while Macquarie's four-month intro savings rate was also cut by 15 basis points down to 1.35% p.a.

Conversely, quite a few of their owner-occupier home loans were also cut, including:

  • UBank: UHomeLoan three-year fixed P&I cut by 19 basis points to 1.95% p.a. (2.36% p.a. comparison rate*)
  • Macquarie: Basic one-year fixed P&I 70% LVR cut by 10 basis points to 2.09% p.a. (2.50% p.a. comparison rate*)

Meanwhile, a few other prominent players in the market broke the sub-2% barrier, including:

  • AMP: Professional Package Fixed 3 Years 90% 52 basis point cut to 1.97% p.a. (3.01% p.a. comparison rate*)
  • CUA: Fixed P&I 3 Years 80% 52 basis point cut to 1.97% p.a. (3.86% p.a. comparison rate*)
  • Citi: Fixed P&I 1 Year 80% 350k+ 20 basis point cut down to 1.99% p.a. (4.94% p.a. comparison rate*)

A number of lenders also cut to under 2% on home loans with different fixed-rate periods - check each lenders' website for further details.


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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