It's widely agreed interest rates will continue their downward march and this week on the home lending market, there are a few more new rates with a '4' in front.
Borrowers can confidently expect more and more of them although at this stage, the market offerings are for fixed rate home loans - perhaps not what punters are after with further cash rate cuts on the horizon.
So, without further ado, let's reveal the new members of the 4% club.
Regional Australia Bank unveils 4.98% p.a. fixed rate
Regional Australia Bank now offers 4.98% p.a. (5.40% p.a. comparison rate*) to owner occupiers with loan-to-value ratios (LVRs) below 70%, making principal and interest (P&I) repayments, and fixing for two years.
It represents a drop of 27 basis points from the old rate and is part of wide-ranging fixed-rate cuts of up to 51 basis points on both owner occupier and investor loans.
See also: Regional Australia Bank: home loan review
BankVic drops below 5%
BankVic has also joined the 4% club with its new two- and three-year fixed rates of 4.98% p.a. (5.53% p.a. comparison rate* - 2 year; 5.48% p.a. comparison rate* - 3 year) for owner occupiers making P&I repayments.
The rate follows a 51 basis point drop to the old rate and applies to LVRs up to 95%.
The two new rates this week undercut Bank of Queensland's 4.99% p.a. (5.64% comparison rate*) two-year fixed rate for owner occupiers with up to 80% LVR making P&I repayments.
That rate also applies to new lending only.
To be eligible for a BankVic home loan, you must be a member - they include serving police, health, emergency service, and government workers and their families.
Greater Bank joins the dip
The Hunter-based bank also has a best new rate of 4.99% p.a. for new lenders fixing their Greater Rate or Ultimate home loans for two years or three years.
[Comparison rates*: Greater Rate home loan - 2 years (6.90% p.a. comparison rate*), 3 years (6.69% pa. comparison rate*); Ultimate home loan - 2 years (7.08% comparison rate*), 3 years (6.89% comparison rate*)]
Greater Bank has lopped 40 basis points off its old rates to get them under the 5% mark.
They're available to owner occupiers making P&I repayments.
Now, onto the much larger 5% club...
The Mutual Bank drops variable special rate
We'll start with the only variable rate move this week - and it's quite a handsome one at that.
The Mutual Bank has cut 10 basis points off its Special variable rate Budget home loan, taking the new rate to 5.49% p.a. (5.49% p.a. comparison rate*) for owner occupiers with up to 80% LVR.
The rate is available for new lending only on amounts above $150,000 and the special offer deal may be withdrawn at any time.
But it's fixed rate movements that dominate from here on in.
Bendigo group slashes fixed rates
The Bendigo stable, including Adelaide Bank and digital lender Tiimely Home, have all taken the axe to their fixed home loan rates this week, chopping up to 90 basis points off some rates.
Bendigo Bank's top new rate is 5.29% p.a. for its online-only Express owner occupier loan fixed for either two years (5.70% p.a. comparison rate*) or three years (5.67% p.a. comparison rate*) for those making P&I repayments.
The new rate sees 40 basis points slashed off the two-year rate and 60 basis points off the three-year rate.
Bendigo has also cut fixed rates on its Complete Home Loan with a best new rate of 5.39% p.a. for two- and three-year fixed periods (5.94% p.a. comparison rate* - 2 years; 5.90% p.a. comparison rate* - 3 years).
Adelaide Bank matches the rate with its SmartFix P&I loan, fixed for two or three years (5.88% p.a. comparison rate - 2 years; 5.85% p.a. comparison rate - 3 years) for owner occupiers making P&I repayments.
The three-year rate represents a 90-basis point cut.
Meantime, Timely Home has dropped its best fixed rate to 5.29% p.a. for Refinance and Purchase customers making P&I repayments for owner occupier loans for two or three year fixed periods (5.50% p.a. comparison rate - 2 years; 5.48% p.a. comparison rate* - 3 years).
Heritage offers 5.09% p.a. fixed rate
Heritage Bank also joined in cutting a range of its fixed rates this week, with a new top rate of 5.09% p.a. (7.45% p.a. comparison rate*) for residential home loan customers locking in for three years.
The loan offers unlimited extra repayments and free redraws.
Newcastle Permanent
While Newcastle Permanent's Hunter partner Greater Bank stole the limelight with its sub-5% rates this week, Newcastle Permanent also made some fixed rate cuts of up to 30 basis points.
Its new rate is 5.09% p.a. for owner occupiers with up to 80% LVR taking out a Premium Plus Package loan and fixing for two or three years (7.19% p.a. comparison rate* - 2 years; 7.00% p.a. comparison rate* - 3 years).
Newcastle Permanent is also currently offering a $3,000 cashback offer to eligible online purchasers and refinancers.
The Capricornian cuts big
Finally, this week, The Capricornian (you guessed it, based on the Tropic of Capricorn in Rockhampton, Queensland) has sliced up to 1.79% p.a. off a range of its fixed P&I and interest only (IO) rates.
Its top new rate is 5.89% p.a. for owner occupiers fixing their Lifestyle home loans for two or three years (6.18% p.a. comparison rate* - 2 years; 6.15% p.a. comparison rate* - 3 years).
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.54% p.a. | 5.58% p.a. | $2,852 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.49% p.a. | 5.40% p.a. | $2,836 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $250 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $248 | $350 | 60% |
| Disclosure |
Image by Miguel A. Padrinan via Pexels
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