- Investment Fixed IO 2 Years: 16 basis point cut to 2.29% p.a. (4.55% p.a. comparison rate*)
- Investment Fixed P&I 2 Years: 16 basis point cut to 2.19% p.a. (4.53% p.a. comparison rate*)
- Investment Variable IO 80%: 10 basis point cut to 2.89% p.a. (2.79% p.a. comparison rate*)
- Investment Variable P&I 80%: 10 basis point cut to 2.64% p.a. (2.69% p.a. comparison rate*)
Interestingly, the comparison rate on the investment variable IO product is lower than the advertised rate - go figure.
Bank of Queensland increased rates on some home loans by up to 30 basis points. A couple of key increases were:
- Residential Fixed 4 Years 90%: 30 basis point increase to 2.89% p.a. (3.19% p.a. comparison rate*)
- Residential Fixed 5 Years 90%: 30 basis point increase to 2.99% p.a. (3.21% p.a. comparison rate*)
That said, BOQ also cut rates on some home loans by between 5 and 30 basis points, namely to variable-rate home loans, and more specifically 'intro' rate home loans.
Meanwhile, UBank increased rates on some owner-occupier 'UHomeLoan' products by up to 25 basis points. Some key increases were:
- UHomeLoan Fixed 5 Years P&I: 25 basis point increase to 2.49% p.a. (2.42% p.a. comparison rate*)
- UHomeLoan Fixed 3 Years P&I: 10 basis point increase to 1.95% p.a. (2.29% p.a. comparison rate*)
The brand also continued to tinker with its UHomeLoan 1 year fixed product - it was cut by 20 basis points to 1.79% p.a. (2.32% p.a. comparison rate*)
Previously, this home loan was UBank's 'lowest ever' for a promotional period ending 30 June, was increased afterwards, and then cut again on Tuesday.
The NAB-owned brand continues its 'No LMI' feature for borrowers with 15% deposits, albeit with slightly higher interest rates than on larger-deposit home loans.
Rate increases to longer-term fixed loans have been an emerging trend over the past few months, as the Reserve Bank wound down its Term Funding Facility and tapered bond purchases, with some lenders also penciling in a cash rate rise before 2024.
Photo by Dmitry Osipenko on Unsplash
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