In fact, one of Australia’s most recognisable banks offered homebuyers and refinancers an early present, slashing its offered fixed interest rates by as much as 55 basis points.

That’s despite no major news regarding the Reserve Bank of Australia’s next cash rate decision hitting headlines, however fixed-rate home loans are also highly contingent on swap rates and other wholesale market activity.

The central bank released the minutes for the December monetary policy decision this week, suggesting once more that another hike might be on the cards when it meets again in February. 

By that time, the market will have digested the upcoming quarterly inflation figures – a key window into whether the RBA’s 13 previous hikes are working. 

But for now, Aussies can sit back, relax, enjoy celebrating with family, and, of course, keep their finger on the pulse of the home loan interest rate market.

Let’s dive into this week’s movers and shakers; keep in mind these rate changes are for new customers only.

Bendigo Bank slashes fixed rates by up to 55 basis points 

First up, community banking giant Bendigo Bank has cut rates on many of its home loan products. 

It comes just three weeks after the bank dropped certain variable rates by as much as 135 basis points, and five weeks after it lifted variable rates on the back of the RBA’s November hike.

Changes made to Bendigo Bank’s fixed rate home loans for owner-occupiers this week include: 

  • Complete Home Loan, one year fixed, principal and interest (P&I): 25 basis point decrease to 6.29% p.a. (6.47% p.a. comparison rate*)
  • Complete Home Loan, two year fixed, P&I: 40 basis point decrease to 5.99% p.a. (6.41% p.a. comparison rate*)
  • Complete Home Loan, three year fixed, P&I: 35 basis point decrease to 6.04% p.a. (6.41% p.a. comparison rate*)
  • Complete Home Loan, four year fixed, P&I: 45 basis point decrease to 6.04% p.a. (6.39% p.a. comparison rate*)
  • Complete Home Loan, five year fixed, P&I: 55 basis point decrease to 6.04% p.a. (6.38% p.a. comparison rate*)

The bank also slashed its interest rates for owner-occupiers making interest only (IO) repayments. 

Those signing on for an interest-only Complete Home Loan or an Express Fixed Home Loan with a fixed rate period of three to five years might now be able to receive a rate of 6.54% p.a. (down between 35 and 55 basis points week-on-week)(comparison rates* vary from 6.35% p.a. to 6.64% p.a.)

That’s slightly higher than the lowest four- and five-year fixed rates on the market right now (6.30% p.a. and 6.35% p.a. respectively, as per InfoChoice data). 

Meanwhile, investors could make the most of these newly dropped fixed rates: 

  • Investment Complete Home Loan, one year fixed, principal and interest (P&I): 20 basis point decrease to 6.64% p.a. (6.77% p.a. comparison rate*)
  • Investment Complete Home Loan, two year fixed, P&I: 35 basis point decrease to 6.34% p.a. (6.72% p.a. comparison rate*)
  • Investment Complete Home Loan, three year fixed, P&I: 30 basis point decrease to 6.39% p.a. (6.72% p.a. comparison rate*)
  • Investment Complete Home Loan, four year fixed, P&I: 40 basis point decrease to 6.39% p.a. (6.71% p.a. comparison rate*)
  • Investment Complete Home Loan, five year fixed, P&I: 50 basis point decrease to 6.39% p.a. (6.69% p.a. comparison rate*)

MyState also cuts fixed home loan interest rates 

Joining in on the fixed-rate-slashing-action was MyState, which cut rates offered on its two- and three-year fixed terms by up to 40 basis points.

Owner-occupiers looking for a product with a loan-to-value ratio (LVR) of up to 80% might be interested in these changes: 

  • Residential, two year fixed, 70%-80% LVR: 40 basis point decrease to 5.99% p.a. (7.97% p.a. comparison rate*) 
  • Residential, three year fixed, 70%-80% LVR: 35 basis point decrease to 6.04% p.a. (7.77% p.a. comparison rate*)

While investors might find their attention is caught by these new rates: 

  • Investment, two year fixed, ≤80% LVR: 25 basis point decrease to 6.39% p.a. (8.06% p.a. comparison rate*) 
  • Investment, three year fixed, ≤80% LVR: 15 basis point decrease to 6.39% p.a. (7.87% p.a. comparison rate*) 

Auswide Bank hikes variable rates by up to 15 basis points

Finally, Auswide Bank broke step this week, lifting many variable home loan rates. 

Those eyeing off the bank might feel the impact of these changes:

  • Basic Home Loan, P&I, ≤80% LVR: 10 basis point increase to 5.99% p.a. (6.01% p.a. comparison rate*) 
  • Basic Investment Loan, P&I, 60%-80% LVR: 10 basis point increase to 6.44% p.a. (6.46% p.a. comparison rate*)  
  • Freedom Package Variable, P&I, ≤80% LVR: 15 basis point increase to 6.09% p.a. (6.43% p.a. comparison rate*)  
  • Freedom Package Investment Variable, P&I, 60%-80% LVR: 15 basis point increase to 6.54% p.a. (6.88% 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
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
90%
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
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 R ARCHITECTURE on Unsplash.





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