- Bendigo Bank cuts fixed interest rates for owner-occupiers and investors by up to 50 basis points
- Smaller lenders Queensland Country Bank and Tic:Toc respectively dropped fixed and variable intereset rates by 5 and 10 basis points
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.
| 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 |
