Many banks and lenders have been making changes to home loan interest rates despite the cash rate remaining at 4.10%, with the Reverse Bank of Australia (RBA) having now held it steady for two consecutive months.

Keep in mind the following changes are for new customers - existing customers may be unaffected or face a different series of changes.

Bendigo Bank drops fixed rates by up to 50 basis points

While the majors weren’t among the movers and shakers, Australia’s seventh-largest retail bank, Bendigo Bank was.

It dropped the fixed interest rates on some of its home loan offerings by as much as 50 basis points this week.

Highlights for owner-occupiers include:

  • Express Fixed Principle and Interest (P&I) 4 year ≤90% LVR: 30 basis point decrease to 5.94% p.a. (5.95% p.a. comparison rate)
  • Express Fixed P&I 5 year ≤90% LVR: 40 basis point decrease to 5.94% p.a. (5.96% p.a. comparison rate)
  • Express Fixed P&I 2 year ≤90% LVR: 25 basis point decrease to 5.99% p.a. (5.92% p.a. comparison rate)
  • Express Fixed P&I 3 year ≤90% LVR: 25 basis point decrease to 5.99% p.a. (5.94% p.a. comparison rate)

While investors could take advantage of these decreases:

  • Investment Express Fixed P&I 5 years ≤90% LVR: 50 basis point decrease to 6.14% p.a. (6.19% comparison rate)
  • Investment Express Fixed Interest Only (IO) 5 years ≤90% LVR: 45 basis point decrease to 6.29% (6.24% comparison rate)
  • Investment Express Fixed P&I 4 year ≤90% LVR: 40 basis point decrease to 6.14% p.a. (6.18% p.a. comparison rate)
  • Investment Express Fixed P&I 4 year ≤90% LVR: 35 basis point decrease to 6.19% p.a. (comparison rate 6.18% p.a.)

See also: What is a comparison rate?

Unity Bank increases home loan rates by as much as 0.55%

Member owned bank Unity Bank went on a hiking spree this week, upping interest rates for many of its fixed and variable rate home loans by between 10 and 55 basis points. The products with the biggest moves included:

  • Advantage IO Fixed 1 year ≤90% LVR: 55 basis point increase to 6.64% p.a. (8.25% p.a. comparison rate)
  • Advantage IO Fixed 5 years ≤95% LVR: 25 basis point increase to 6.89% p.a. (7.78% p.a. comparison rate)
  • Advantage Plus Home Loan Standard ≤95% LVR: 25 basis point increase to 7.59% p.a. (7.90% p.a. comparison rate)
  • First Home Buyer Advantage Plus P&I <60% LVR: 15 basis point increase to 5.99% p.a. (5.99% p.a. comparison rate)

It's been a busy week for Unity Bank. It also launched the nation's first unconditional 5% savings account, MoneyMax.

Tic:Toc drops variable rate

Online lender Tic:Toc - underwritten by Bendigo & Adelaide Bank - lowered the rate of its variable interest owner-occupier home loan offering:

  • Live-in Variable P&I ≤90% LVR: 5 basis point decrease to 5.69% p.a. (5.70% p.a. comparison rate)

Queensland Country Bank drops fixed rates

The customer-owned bank lowered its fixed home loan interest rates by 10 basis points. Highlights include:

  • 3 Year Fixed Rate Package Home Loan P&I <80% LVR: 10 basis point decrease to 5.99% p.a. (7.68% p.a. comparison rate)
  • 3 Year Fixed Rate Home Loan P&I <80% LVR: 10 basis point decrease to 6.14% p.a. (7.92% p.a. comparison rate)

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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.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply 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.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured 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
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 . View disclaimer.

Image by Kaleb Tapp on Unsplash.



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