Westpac-owned St. George, Bank of Melbourne and BankSA have announced cuts to their fixed rate offerings of up to 135 basis points effective for new home loan applications received from 21 August.
Customers with bigger deposits are being rewarded with the lowest rates, with some rates as low as 2.94% p.a. for terms of up to five years, though the comparison rates do differ.
The biggest cuts were by St. George and Bank of Melbourne who cut their four and five-year fixed-rate loans for new owner-occupiers paying principal and interest by 135 basis points.
Looking for a low variable rate home loan? The table below displays owner-occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | Featured Online ExclusiveUp To $4K Cashback |
| |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | Featured Apply In Minutes |
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Despite recent sharp cuts to fixed rates, demand for fixed-rate home loans has continued to fall.
According to the latest data from Mortgage Choice, demand for fixed-rate mortgages fell to 14% in July.
Mortgage Choice CEO Susan Mitchell said even though there are good deals, she isn’t surprised amid expectations of further rate cuts to the cash rate from the Reserve Bank of Australia (RBA).
“Despite some very attractive fixed-rate home loan pricing, borrowers across the country are reluctant to fix,” Ms Mitchell said.
“It’s not entirely surprising that borrowers are choosing to keep their options open by opting for variable rate home loans. The reality is, the opportunity to save on repayments if the Reserve Bank cuts the cash rate is too good to pass up.
“In the minutes of the RBA Board’s August meeting released yesterday, members judged it reasonable to expect that an extended period of low-interest rates would be required and suggested that further easing of monetary policy may be on the cards.”
St. George fixed rate cuts
St. George has made a number of big cuts of up to 135 basis points for owner-occupiers.
- Four-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.76% p.a.)
- Five-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.72% p.a.)
- One-year fixed principal and interest 60% LVR has been cut by 105 basis points to 2.94% p.a. (comparison rate 3.90% p.a.)
- Two-year fixed principal and interest 60% LVR has been cut by 15 basis points to 2.94% p.a. (comparison rate 3.85% p.a.)
- Three-year fixed principal and interest 60% LVR has been cut by 25 basis points to 2.94% p.a. (comparison rate 3.81% p.a.)
- Four-year fixed principal and interest 60-80% LVR has been cut by 135 basis points to 2.99% p.a. (comparison rate 3.81% p.a.)
- Five-year fixed principal and interest 60-80% LVR has been cut by 135 basis points to 2.99% p.a. (comparison rate 3.77% p.a.)
Bank of Melbourne fixed rate cuts
Bank of Melbourne is rewarding borrowers with bigger deposits, slashing rates by up to 135 basis points.
- Four-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.76% p.a.)
- Five-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.72% p.a.)
If fixing for that long isn’t your thing, Bank of Melbourne also offer that interest rate across their one, two and three-year fixed terms, though the comparison rates do differ slightly.
BankSA fixed rate cuts
- Three-year fixed principal and interest $150k have been cut by 25 basis points to 2.99% p.a. (comparison rate 3.89% p.a.)
- Two-year fixed principal and interest $150k have been cut by 15 basis points to 2.99% p.a. (comparison rate 3.94% p.a.)
- Three-year fixed principal and interest has been cut by 25 basis points to 3.14% p.a. (comparison rate 4.64% p.a.)
- Four-year fixed principal and interest has been cut by 15 basis points to 3.14% p.a. (comparison rate 4.50% p.a.)
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