UBank, Macquarie, AMP slash home loan interest rates

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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.

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.

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. 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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