This comes as ABS data released earlier this month revealed to February 2023 refinancing numbers reached a record high of $13.6 billion as Aussies sought the best deals in the market. 

Australia’s largest bank was the first to make a move in the past week, cutting fixed home loan rates by up to 40 basis points. 

Following CommBank’s lead, ANZ has rounded out the week reducing fixed home loan rates by up to 60 basis points (0.60%). 

For new owner occupiers, key decreases across ANZ’s fixed home loan portfolio include:

  • Residential Fixed 3 Years LVR ≤80%: 60 basis point decrease to 5.49% p.a. (6.21% p.a. comparison rate*).
  • Residential Fixed IO 3 Years LVR ≤80%: 50 basis point decrease to 5.69% p.a. (6.27% p.a. comparison rate*).
  • Residential Fixed 3 Years 80-90% LVR: 60 basis point decrease to 5.54% p.a. (6.37% p.a. comparison rate*).
  • Residential Fixed IO 3 yrs 80-90% LVR: 50 basis point decrease to 5.74% p.a. (6.43% p.a. comparison rate*).

Aside from slashing fixed home loan interest rates, ANZ has increased rates across Simplicity Plus products for owners and investors by 10 basis points (0.10%). 


Bank Australia cuts fixed home loan rates by up to 1.01% p.a. 

Customer-owned Bank Australia cut fixed home loan rates in the past week across its portfolio by up to 101 basis points. 

Highlights of these decreases for owner occupiers across principal and interest (P&I) fixed rate loans include: 

  • Basic Fixed 3 Years LVR ≤70%: 36 basis point decrease to 5.39% p.a. (5.33% p.a. comparison rate*).
  • Basic Fixed 5 Years LVR ≤70%: 80 basis point decrease to 5.39% p.a. (5.35% p.a. comparison rate*).
  • Basic Fixed 3 Years LVR ≤80%: 36 basis point decrease to 5.39% p.a. (5.33% p.a. comparison rate*).
  • Basic Fixed 5 Years LVR ≤80%: 90 basis point decrease to 5.39% p.a. (5.35% p.a. comparison rate*).
  • Basic Fixed 3 Years LVR ≤90%: 46 basis point decrease to 5.59% p.a. (5.42% p.a. comparison rate*).
  • Basic Fixed 5 Years LVR ≤90%: 101 basis point decrease to 5.59% p.a. (5.47% p.a. comparison rate*). 

For investors, key decreases include: 

  • Investment Basic IO Fixed 3 Years LVR ≤70%: 41 basis point decrease to 5.59% p.a. (5.49% p.a. comparison rate*).
  • Investment Basic IO Fixed 5 Years LVR ≤70%: 100 basis point decrease to 5.59% p.a. (5.51% p.a. comparison rate*). 
  • Investment Basic P&I Fixed 3 Years LVR ≤80%: 41 basis point decrease to 5.39% p.a. (5.44% p.a. comparison rate*).
  • Investment Basic P&I Fixed 5 Years LVR ≤80%: 100 basis point decrease to 5.39% p.a. (5.44% p.a. comparison rate*).

Australian Mutual Bank cuts fixed home loan rates by up to 0.55% p.a. 

Australian Mutual Bank has decreased fixed home loan rates in the past week by up to 55 basis points. 

Key decreases for both owner occupiers and investors include: 

  • Residential Fixed 3 Years LVR 80%: 35 basis point decrease to 5.58% p.a. (5.80% p.a. comparison rate*). 
  • Residential Fixed 5 Years LVR 80%: 55 basis point decrease to 6.03% p.a. (5.97% p.a. comparison rate*).
  • Investment Fixed P&I 3 Years LVR 80%: 35 basis point decrease to 5.78% p.a. (6.22% p.a. comparison rate*).
  • Investment Fixed P&I 5 Years LVR 80%: 55 basis point decrease to 6.23% p.a. (6.34% p.a. comparison rate*).  

Athena cuts fixed home loan rates by up to 0.70% p.a. 

Digital lender Athena cut fixed home loan rates over the past week by up to 70 basis points. 

The most notable changes across Athena’s fixed rate portfolio were observed across investor fixed rate loans, including: 

  • Investor Fixed P&I 3 Years LVR 70-80%: 55 basis point decrease to 5.69% p.a. (5.69% p.a. comparison rate*).
  • Investor Fixed IO 3 Years LVR 70-80%: 70 basis point decrease to 5.69% p.a. (5.71% p.a. comparison rate*).

New fixed-rate with no break costs

With competition heating up in the fixed rate home loan space led by major banks making moves, non-bank lender Pepper Money has launched a two-year fixed rate home loan with the added benefit of no break costs.

The new two-year fixed rate home loan for customers with a LVR of up to 55% bears an interest rate of 5.59% p.a. (5.77% p.a. comparison rate*) and is available for those submitting an application before 12 May 2023 with formal approval by 19 May 2023. 

The low-LVR product is ostensibly designed for those looking to refinance, whose mortgages and homes have considerable equity.

With no break costs, the new product from Pepper Money aims to provide customers with the flexibility to make extra repayments or switch to a variable interest rate option at any time without incurring significant fees.

A break fee is a calculation considering the lender's wholesale costs, the rate at when you fixed versus the new product, and how long you have left on your fixed period - as such, it can often cost thousands or tens of thousands of dollars.


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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
VariableMore details
Unlimited RedrawsApply In Minutes
  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Unlimited RedrawsApply In Minutes

Sucasa – Ultra Low Rate (Variable) - <95% LVR - No LMI (New Purchases)

  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
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 February 27, 2024. View disclaimer.

Image by dashu83 via freepik





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