Westpac slashes home loan rates, HSBC edges closer to the 1% mark

author-avatar By on June 05, 2020
Westpac slashes home loan rates, HSBC edges closer to the 1% mark

Photo by Scancode Productions on Unsplash

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Keep in mind special offers can be withdrawn at any time.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.

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
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.^
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES

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 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. Rates correct as of October 26, 2021. View disclaimer.


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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author-avatar
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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