Westpac slashed rates on some home loans today by up to 24 basis points, while HSBC cut one home loan rate down to 2.09% p.a. on Monday.
After its big four compatriots NAB and ANZ announced some rate movements two weeks ago, Westpac has joined the cutting party.
Westpac's biggest cuts were to its 'Flexi First Option' home loan, as a special offer, from 15 to 24 basis points. The details are:
- Flexi First Option P&I 70%: 24 basis point cut to 2.69% p.a. (2.70% p.a. comparison rate*)
- Flexi First Option P&I 95%: 24 basis point cut to 2.79% p.a. (2.80% p.a. comparison rate*)
- Investment Flexi First Option P&I 70%: 15 basis point cut to 3.09% p.a. (3.10% p.a. comparison rate*)
- Investment Flexi First Option P&I 80%: 15 basis point cut to 3.19% p.a. (3.20% p.a. comparison rate*)
Westpac also made cuts to various 'Premier Advantage' fixed packaged home loans by up to 20 basis points.
Keep in mind special offers can be withdrawn at any time.
Market-wide, banks are edging ever closer to the elusive home loan that starts with a 1.
On Monday, HSBC cut its residential home loans fixed for two years paying principal and interest (P&I) down to 2.09% p.a (2.98% p.a. comparison rate*)
This represents a cut of 16 basis points.
Borrowers must have a maximum loan to value ratio (LVR) of 80% i.e. a 20% deposit.
Elsewhere, it was a fairly subdued week for home loan rate changes, with Bankwest and Bank Australia being two other major players to cut.
Bankwest home loan rate changes
Bankwest made a couple of cuts to fixed home loans for owner occupiers paying P&I:
- Complete Home Loan Fixed Rate 2 Years: 45 basis point cut to 2.24% p.a. (3.57% p.a. comparison rate*)
- Fixed Rate 2 Years: 45 basis point cut to 2.44% p.a. (4.39% p.a. comparison rate*)
Bank Australia home loan rate changes
Bank Australia made quite a few cuts to home loans by 50 basis points for both owner occupiers and investors willing to fix for five years. Some key cuts are:
- Basic Fixed 5 Years 70% LVR: Down to 2.84% p.a. (3.10% p.a. comparison rate*)
- Residential Premium Package 5 Years 70-90% LVR: Down to 2.79% p.a. (3.38% p.a. comparison rate*)
- Inv Basic Fixed 5 Years 80% LVR: Down to 3.14% p.a. (3.35% p.a. comparison rate*)
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.
Smart Booster Home Loan
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) owner-occupied 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. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
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): 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 2020) 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, 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.
*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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