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.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
WIN YOUR HOME LOAN INTEREST FREE

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • WIN your home loan interest free and save up to $1.1 million. Refinance by 29 October. T&Cs apply.
  • Refinance Only. Fast online application, refinance in minutes, not weeks.
  • No Nano fees, Free 100% offset sub account. Mobile app. Visa debit card & instant payments.
WIN YOUR HOME LOAN INTEREST FREE

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • WIN your home loan interest free and save up to $1.1 million. Refinance by 29 October. T&Cs apply.
  • Refinance Only. Fast online application, refinance in minutes, not weeks.
  • No Nano fees, Free 100% offset sub account. Mobile app. Visa debit card & instant payments.
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
VariableMore details
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
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

Rates correct as of September 28, 2021. 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 2020. They are (in descending order): Great Southern Bank, 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 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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, Performance Drive 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.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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