This is despite the prudential regulator's serviceability buffer bump due to come into effect from the start of November.

Previously, lenders responded to tightened credit regulations in 2014 and 2017 by increasing home loan rates.

However, CBA's biggest cuts were generally to borrowers with bigger deposits, while APRA's latest announcements will target highly-leveraged borrowers.

Some of the more noteworthy cuts for owner occupiers included:

  • Extra IO 70%: 40 basis point cut to 2.85% p.a. (2.51% p.a. comparison rate*)
  • Extra IO 80%: 30 basis point cut to 2.95% p.a. (2.61% p.a. comparison rate*)
  • Extra P&I 70%: 40 basis point cut to 2.29% p.a. (2.30% p.a. comparison rate*)
  • Extra P&I 80%: 30 basis point cut to 2.39% p.a. (2.40% p.a. comparison rate*)

Variable investor home loans also saw cuts to their interest rates, albeit to a lesser extent:

  • Inv Extra IO 70%: 23 basis point cut to 3.45% p.a. (3.11% p.a. comparison rate*)
  • Inv Extra IO 80%: 16 basis point cut to 3.55% p.a. (3.21% p.a. comparison rate*)
  • Inv Extra P&I 70%: 23 basis point cut to 2.89% p.a. (2.90% p.a. comparison rate*)
  • Inv Extra P&I 80%: 16 basis point cut to 2.99% p.a. (3.00% p.a. comparison rate*)

Meanwhile, fixed rates were increased by 10 basis points, continuing the theme in recent weeks where lenders cut rates on variable-rate loans while increasing rates on fixed terms.

Comparison rates on interest-only home loans are lower than the advertised rates - this is because CBA's maximum interest-only period is five years, and the comparison rate assumes borrowers switch to a principal & interest loan afterwards, which typically have lower interest rates.

ING, AMP also cut variable mortgage rates

ING cut in a similar fashion to CBA, with a focus on variable mortgage rates.

Some more noteworthy cuts included:

  • Orange Advantage P&I 80%: 25 basis point cut to 2.29% p.a. (2.64% p.a. comparison rate*)
  • Mortgage Simplifier P&I 80%: 25 basis point cut to 2.24% p.a. (2.27% p.a. comparison rate*)

These home loan rates apply to home buyers borrowing less than a million dollars.

Orange Advantage home loans come with a 100% offset account, while the Mortgage Simplifier line attracts no monthly or annual fees.

ING also increased interest rates on fixed-rate home loans by between 5 and 20 basis points. 

On Thursday AMP made changes to a few 'Professional Package' variable-rate home loans for investors:

  • Interest Only 80%: 54 basis point cut to 2.79% (2.97% p.a. comparison rate*)
  • Principal & Interest 80%: 63 basis point cut to 2.49% p.a. (2.91% p.a. comparison rate*)
  • Principal & Interest 90%: 52 basis point cut to 3.09% p.a. (3.49% p.a. comparison rate*)
  • Investment Construction: 54 basis point cut to 2.79% p.a. (3.45% p.a. comparison rate*)

These home loan rates apply to home buyers borrowing less than $500,000.


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Lender

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Important Information and Comparison Rate Warning

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 be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of March 1, 2024. View disclaimer.

Photo by Squirrel Photos on Pixabay





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