The RBA Board on 8 July decided to deliver not a widely expected cut but a surprise hold, leaving the cash rate at 3.85% until it has "a little more information" to confirm inflation is on track to reach the midpoint of its target.
Mortgage holders holding out hopes for lower home loan rates may need to wait a little longer, at least until the August meeting, where a rate cut is tipped with near certainty.
Until then, the market is likely to remain subdued, though smaller lenders are cutting through the stillness by adjusting their home loan rates despite the unchanged benchmark.
Summerland Bank lowers home loan rates
Customer-owned Summerland Bank made a flurry of cuts across a range of its home loans.
The bank trimmed 5 basis points from its Basic Home Loan, bringing the lowest rate on its special offer product to 5.49% p.a (5.54% p.a. comparison rate*) for customers with a maximum loan-to-value ratio (LVR) of 60%.
Summerland's Basic Home Loan comes with a redraw facility and features no establishment or monthly administration fees for new customers.
It also reduced the rate on its Premium Home Loan special offer, cutting it by 10 basis points to 5.69.% p.a. (6.07% p.a. comparison rate*).
The bank's headline variable rate of 5.44% p.a. (5.49% p.a. comparison rate*) remains available through its Eco Loan, designed for customers financing the purchase or construction of an environmentally sustainable property.
Summerland Bank also dropped its investment home loans products, including the Investment Eco Home Loan special offer, now at 5.69% p.a. (5.74% p.a. comparison rate) for borrowers with 60% maximum LVR.
Additionally, the bank also reduced the rates of its fixed home loans for owner occupiers and investors.
Other movers
- Bank of China varies fixed home loan rates by up to 60 basis points
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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 |
