UBank, Macquarie, AMP slash home loan interest rates

author-avatar By on July 10, 2020
UBank, Macquarie, AMP slash home loan interest rates

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In the past week, UBank, Macquarie and AMP all cut home loan interest rates, with one of them cutting by up to 135 basis points.

Today UBank announced cuts to its 'lowest ever' level on some variable home loans, while also cutting some fixed rates earlier in the week.

Cuts were made to products paying principal and interest (P&I), and interest-only (IO). Some details are:

  • Variable Owner Occupied P&I: Down to 2.49% p.a. (2.49% p.a. comparison rate*)
  • UHomeLoan Fixed 3 Years P&I: 15 basis point cut to 2.14% p.a. (2.41% p.a. comparison rate*)

New fixed home loans that settle on or before 30 September will also have their $395 lock rate fee waived.

The 2.49% variable rate comes into effect for new customers from 17 July, while existing variable home loan customers will also have their home loans cut by between 10 and 15 basis points, which is unusual unless they renegotiate or the central bank cuts the cash rate.

Macquarie cuts

Yesterday Macquarie made cuts by between five and 30 basis points on a wide variety of home loans. Some key cuts include:

  • Basic Variable Owner Occupied 80%: 15 basis point cut to 2.74% p.a. (2.74% p.a. comparison rate*)
  • Basic Variable Investment IO 80%: 30 basis point cut to 3.34% p.a. (3.34% p.a. comparison rate*)

AMP cuts

Earlier in the week AMP made cuts by between 23 and 135 basis points, primarily on its 'Professional Package' home loans. Some key cuts are:

  • Professional Package Investment Variable P&I 80% 100k+: 135 basis point cut to 3.19% p.a. (3.59% p.a. comparison rate*)
  • Professional Package Variable P&I 80% 100k+: 114 basis point cut to 2.73% p.a. (3.14% p.a. comparison rate*)

These new AMP rates are for new borrowers only.

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.

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayment
 
2.59% 2.55% $1,599 Go to site
2.89% 2.89% $1,663 Go to site
Budget Home Loan OO P&I
2.68% 2.74% $1,618 Go to site

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 03 August 2020. View disclaimer.

ME Bank, Qudos Bank and loans.com.au also cut

In the past week, a variety of member-owned banks and challenger brands also cut home loan interest rates.

ME Bank

On Wednesday, ME Bank made some cuts to some fixed investment loans by up to 79 basis points. These cuts are:

  • Member Package Fixed 1 Year: 79 basis point cut to 2.89% p.a. (3.68% p.a. comparison rate*)
  • Member Package Fixed 2 Years: 39 basis point cut to 2.79% p.a. (3.63% p.a. comparison rate*)
  • Flexible Fixed 1 Year: 79 basis point cut to 3.04% p.a. (4.90% p.a. comparison rate*)
  • Flexible Fixed 2 Years: 39 basis point cut to 2.94% p.a. (4.70% p.a. comparison rate*)

These comparison rates apply to borrowers with 80% LVR or lower (at least a 20% deposit). The comparison rate is higher for borrowers with less than a 20% deposit.

Qudos Bank

Qudos Bank made a wide variety of cuts to fixed home loans for both investors and owner-occupiers by 20 basis points. Some key details are below:

  • Owner Occupied Fixed P&I 1 Year 80%: Down to 2.29% p.a. (3.02% p.a. comparison rate*)
  • Owner Occupied Fixed P&I 3 Years 80%: Down to 2.29% p.a. (2.89% p.a. comparison rate*)
  • Investment Fixed P&I 1 Year 80%: Down to 2.59% p.a. (3.32% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years 80%: Down to 2.59% p.a. (3.19% p.a. comparison rate*)

Again, these rates apply to borrowers with at least a 20% deposit.

Loans.com.au

On Wednesday, loans.com.au made some cuts on its home loans, including:

  • Smart Home Loan 80%: 6 basis point cut to 2.57% p.a. (2.59% p.a. comparison rate*
  • Owner-Occupier IO Fixed 2 Years: Down to 2.79% p.a (3.05% p.a. comparison rate*)
  • Investor P&I Fixed 2 Years: Down to 2.69% p.a (3.34% p.a. comparison rate*)
  • Investor IO Fixed 2 Years: Down to 2.99% p.a (3.38% p.a. comparison rate*)

These fixed-rate discounts are for borrowers with at least a 20% deposit and are available for a limited-time-only for new customers.


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

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.

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*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.

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author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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