BOQ, Credit Union SA slash home loan rates by up to 106bps
Photo by Angus Gray on Unsplash
The 106 basis point cut was made by Credit Union SA, on its Investment Variable Rate Home Loan, paying principal and interest (P&I), and is a discounted special offer.
The rate is now 2.59% p.a (2.69% p.a. comparison rate*).
The corresponding interest-only (IO) loan was also cut by 66 basis points, down to 3.19% p.a. (3.21% p.a. comparison rate*)
Meanwhile, BOQ also made a few cuts, including:
- Residential Fixed 5 Years Discount 80%: 45 basis point cut to 2.54% p.a. (3.34% p.a. comparison rate*)
- Investment Fixed 5 Years Discount 80%: 25 basis point cut to 2.74% p.a. (3.52% p.a. comparison rate*)
Note that special offers and discounts can be withdrawn at any time.
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 |
Other BOQ and Credit Union SA changes
The party didn't stop there, with both lenders changing rates on a variety of other loans.
Credit Union SA raised rates on a couple of loans, including:
- Fixed Package 2 Years P&I Package Special: 20 basis point rise to 2.39% p.a. (3.55% p.a. comparison rate*)
- Fixed Package 3 Years P&I Package Special: 20 basis point rise to 2.39% p.a. (3.48% p.a. comparison rate*)
Note these are still under the 'special offer' moniker, and are for owner-occupiers paying P&I on a home loan package.
BOQ also cut its three-year fixed residential home loan as a discounted rate, for owner-occupiers paying P&I with a maximum LVR of 80%.
The rate was cut by 10 basis points and now stands at 2.25% p.a. (3.41% p.a. comparison rate*).
See Also: The Lenders Offering Home Loans Under 2.00%
ME Bank cuts to 'lowest ever'
Today, ME Bank cut its variable basic owner-occupier loans down to its 'lowest levels ever':
- Basic Owner Occupier P&I <80%: 59 basis point cut to 2.58% p.a. (2.60% p.a. comparison rate*)
- Basic Owner Occupier P&I <95%: 53 basis point cut to 2.99% p.a. (3.01% p.a. comparison rate*)
These rates are for minimum loan amounts of $150,000.
ME's general manager of home lending Andrew Bartolo said the no-frills rates deliver "exactly what many Australians want".
"ME’s Basic Home Loan is already very simple, with no frills or fancy features and no ongoing account keeping fees," he said.
The new rates are eligible for new and refinancing customers applying on 28 August and later.
Compared to other owner occupier loans, as seen in the table above, ME's cuts now bring it in line with some of the most competitive loans in the market.