Which banks moved home loan rates in the week of 25 August?
- Bank of Queensland dropped its low cost investor variable home loan interest only rate by 40 basis points to 6.29% p.a.
- ING joined the cutting action, lowering fixed and variable home loan interest rates by up to 30 basis points
- Both IMB and Australian Mutual Bank varied their fixed home loan interest rates
Regional and challenger banks led the charge in shaking home loan interest rates up this week, with one offering discounts of as much as 40 basis points.
That was despite the cash rate remaining unchanged at 4.10% – with the Reserve Bank of Australia board having paused for two consecutive monthly meetings.
Keep in mind, the following changes are for new customers – and some are special offers. Existing home loan holders might be unaffected or impacted by different changes.
Bank of Queensland varies rates by up to 40 basis points
The biggest drop of the week just been came from the sunshine state’s Bank of Queensland.
It lowered the variable interest rate of two interest only (IO) home loan products by 40 basis points for borrowers with a loan-to-value ratio (LVR) of 80% of under.
Take a look at it, and some of the other home loan rate changes made by the bank this week:
- Investment Economy Variable Home Loan IO ≤80% LVR: 40 basis point decrease to 6.29% per annum (p.a.)(7.19% p.a. comparison rate**)
- Investor Clear Path Variable Rate Home Loan IO ≤80% LVR: 40 basis point decrease to 6.54% p.a. (6.55% p.a. comparison rate*)
- Economy Variable P&I ≤70% LVR: 10 basis point increase to 5.94% p.a. (6.09% p.a. comparison rate*)
- Economy Variable P&I ≤80% LVR: 10 basis point increase to 5.99% p.a. (6.14% p.a. comparison rate*)
ING drops interest rates by up to 30 basis points
Joining its competitor bank peers in dropping home loan interest rates over the week gone by was ING.
The Dutch banking giant lowered the rates on some of its fixed and variable interest products by as much as 30 basis points.
Take a look at the changes owner occupiers could be eligible for:
- Orange Advantage Residential Fixed P&I 2 yrs ≤80% LVR: 30 basis point decrease to 6.09% p.a. (5.91% p.a. comparison rate*)
- Orange Advantage Residential Fixed P&I 1 yr 80-90% LVR: 30 basis point decrease to 6.29% p.a. (6.18% p.a. comparison rate*)
- Orange Advantage Residential Fixed P&I 2 yrs 80-90% LVR: 30 basis point decrease to 6.19% p.a. (6.17% p.a. comparison rate*)
- Orange Advantage Variable IO $150k+ ≤80% LVR: 15 basis point decrease to 6.34% p.a. (6.32% p.a. comparison rate*)
Meanwhile, investors could find interest in these newly lowered rates:
- Investors Orange Advantage Variable IO $150+ ≤80% LVR: 5 basis point decrease to 6.29% (6.41% p.a. comparison rate*)
- Investment Fixed P&I 2 years ≤80% LVR: 30 basis points decrease to 6.29% p.a. (6.11% p.a. comparison rate*)
- Investment fixed P&I 3 year ≤80% LVR: 20 basis points decrease to 6.19% p.a. (6.11% p.a. comparison rate*)
- Investor Mortgage Simplifier IO $150k+ ≤80% LVR: 5 basis point decrease to 6.29% p.a. (6.17% p.a. comparison rate*)
IMB interest rate increases
IMB upped fixed interest rates on numerous products by as much as 35 basis points last week, with highlights including:
- Residential Fixed P&I 2 years ≤80% LVR: 25 basis point increase to 5.99% p.a. (6.14% p.a. comparison rate*)
- Residential Fixed P&I 3 years ≤80% LVR: 25 basis point increase to 5.99% p.a. (6.14 p.a. comparison rate*)
- Residential Fixed P&I 3 years 80-95% LVR: 25 basis point increase to 6.14% p.a. (6.18% p.a. comparison rate*)
- Investment Fixed P&I 3 years ≤90% LVR: 35 basis point increase to 6.19% p.a. (6.60% comparison rate* p.a.)
Australian Mutual Bank interest rate movements
And finally, Australian Mutual Bank varied its fixed interest rates by up to 30 basis points over the week.
Owner occupiers and investors might find their attention grabbed by these changes:
- Residential Fixed 2 years ≤95% LVR: 30 basis point increase to 5.63% p.a. (6.19% p.a. comparison rate*)
- First Home Buyer Fixed Owner Occupied 2 years ≤95% LVR: 30 basis point increase to 5.53% p.a. (6.14% p.a. comparison rate*)
- Investment Fixed IO 2 years ≤95% LVR: 20 basis point increase to 5.93% p.a. (6.76% p.a. comparison rate*)
- Investment Fixed P&I 2 years ≤95% LVR: 20 basis point increase to 5.73% p.a. (6.61% 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 |
