Two of Beyond Bank's biggest cuts were applied to interest-only (IO) investment home loans fixed for two to three years:
- Total Home Loan 2 Years: 50 basis point cut to 2.39% p.a. (4.30% p.a. comparison rate*)
- Total Home Loan 3 Years: 50 basis point cut to 2.39% p.a. (4.15% p.a. comparison rate*)
The new interest rates apply to borrowers with a maximum loan-to-value ratio (LVR) of 80% and are advertised as a 'special offer', meaning they could be withdrawn at any time.
The equivalent fixed loans paying principal & interest (P&I) were also cut by 20 basis points.
A series of other investment loans offered by Beyond Bank were also cut by 10 basis points.
A few more lenders increased home loan rates this week
These lenders include BCU, which raised rates on some five-year fixed loans:
- Investment Fixed IO 5 Years: 10 basis point rise to 2.89% p.a. (3.69% p.a. comparison rate*)
- Investment Fixed P&I 5 Years: 10 basis point rise to 2.79% p.a. (3.65% p.a. comparison rate*)
- Residential Fixed P&I 5 Years: 10 basis point rise to 2.59% p.a. (3.47% p.a. comparison rate*)
Qudos Bank also increased rates on a large swathe of home loans by 10 basis points. Some noteworthy ones include:
- Owner Occupied P&I 3 Years 90%: Increased to 2.19% p.a. (2.64% p.a. comparison rate*)
- Investment P&I 3 Years 90%: Increased to 2.59% p.a. (3.08% p.a. comparison rate*)
That said, Qudos Bank also cut rates slightly on a number of owner-occupied and construction loans by between 5 and 10 basis points.
Horizon Bank also increased rates on two home loans by 10 basis points:
- Owner Occupied Fixed 3 Years: Increased to 2.29% p.a. (3.23% p.a. comparison rate*)
- Investment Fixed 3 Years: Increased to 2.54% p.a. (3.48% p.a. comparison rate*)
Term Funding Facility in the rear view mirror
A few experts said its end will lead to a 'material' rise in home loan rates.
Prudential regulator data also shows that the introduction of the TFF coincides with an increase in 'riskier' loans, particularly when it comes to debt-to-income ratios.
So, what's the wrap on the TFF?
RBA data released on Monday shows a further $9.3 billion was drawn down from the $200 billion-plus facility in the past week, totalling $147.4 billion since inception.
This means a further $61.6 billion will need to be drawn down by the end of the month.
When it rains it pours...
Photo by Jason Abdilla on Unsplash
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