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.

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%
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5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
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  • 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
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  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
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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 Soroush Karimi on Unsplash.



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