Photo by Joseph Marcus on Unsplash
Trustworthiness was ranked in a Banking Brand and Trust Index survey released early in May, with Greater Bank deemed the 'most trustworthy' with a score of +23 (on a scale from negative 100 to positive 100), while Bank of China was least trustworthy at -21.
Both of these banks have cut home loan rates over the past week.
Bank of China made cuts to its fixed home loans from one to five years, including:
- Discount Plus Home Loan P&I Special Offer: 10 basis point cut to 2.68% p.a. (3.13% p.a. comparison rate*)
- Fixed Rate Investment Loan P&I 1 Year: 60 basis point cut to 3.09% p.a. (4.26% p.a. comparison rate*)
Across the board, Bank of China cut interest rates on home loans for both owner-occupiers and investors paying interest-only (IO) as well as principal and interest (P&I) by between nine and 60 basis points.
Keep in mind home loan 'special offers' can be withdrawn at any time.
Last Friday, Greater Bank cut home loan interest rates by up to 45 basis points, with investors getting most of the sugar. Some key cuts include:
- Great Rate Investment Fixed P&I 2 Years: 45 basis point cut to 2.54% p.a. (3.79% p.a. comparison rate*)
- Great Rate Fixed 1 Year: 10 basis point cut to 2.09% p.a. (3.53% p.a. comparison rate*)
Greater Bank's loans are now edging close to breaking the 1% barrier, and earlier in the week one lender broke that barrier.
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 | 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
Challenger banks bring on the cuts
More lenders, particularly customer-owned institutions and challenger brands, cut rates in the past week.
Queensland Country Bank
The bank that sponsors the NRL Cowboys' stadium made some cuts as 'special' offers at the start of the month:
- Investment Special Variable Package P&I 80%: 35 basis point cut to 2.79% p.a. (3.17% p.a. comparison rate*)
- Special Variable Package P&I 80%: 35 basis point cut to 2.79% p.a. (3.17% p.a. comparison rate*)
Queensland Country Bank stands among very few other lenders that offer the same rates for both owner-occupiers and investors.
The packaged home loans give borrowers access to a transaction account, a low-rate credit card and offset account.
Bank First
Bank First also made cuts to some packaged home loans this week.
All cuts in the past week were by 25 basis points. Some include:
- Premier Package Owner Occupier P&I Fixed 3 Years 80%: 25 basis point cut to 2.19% p.a. (3.26% p.a. comparison rate*)
- Complete Investment P&I Fixed 3 Years 80%: 25 basis point cut to 2.54% p.a. (3.43% p.a. comparison rate*)
Like with many lenders, to access the most competitive rates borrowers usually need to have a deposit of 20% or greater, as seen in the cuts above.