January is traditionally a quieter time for financial markets, but two mortgage lenders have tweaked their home loan rates during the week.

One lender has dropped its first home buyers and residential fixed interest home loan rates while the other has increased its basic and variable and flexible home loan rates.

The changes come ahead of the Reserve Bank of Australia’s first meeting for 2024, scheduled over two days on 5-6 February.

Earlier this week, the National Australia Bank fell into line with the other three banking majors in forecasting there would be no rise in the cash rate in February.

December’s job figures also showed a stabilising in the unemployment rate at 3.9%, seasonally adjusted.

It’s worth noting the number of employed people fell by a significant 65,100 month-on-month although the Australian Bureau of Statistics said this followed higher than usual growth in October and November.

Further dousing the prospect of a February cash rate rise was this week’s release of the Westpac-Melbourne Institute monthly Consumer Sentiment Index for January.

It recorded a 1.3% drop in consumer sentiment, the most pessimistic start to a new year since the deep recession of the 1990s.

Now, let’s check the lenders making home loan interest rate changes this week, starting with the falling interest rates:

Beyond Bank lowers fixed rates for owner occupiers, investors and first home buyers

Mutual bank Beyond Bank has got the ball rolling with forecast interest rate cuts during 2024.

The bank has cut its First Home Buyers Fixed rates for building and home loans as well as its Residential Fixed loans. Here are the details:

First home buyers

  • First Home Buyers Fixed 1 year – Building Loans <95% LVR: 10 basis point decrease to 6.79% p.a. (8.02% p.a. comparison rate*)
  • First Home Buyers Fixed 1 year – Home Loans <95% LVR: 10 basis point decrease to 6.59% p.a. (8.00% p.a. comparison rate*)

Residential fixed rate loans

  • Total Home Loan Residential Fixed 1 year, 4 years, 5 years ≤80% LVR: 10 basis point decrease to 6.59% p.a. (8.00% p.a. comparison rate* - 1 year) (7.68% p.a. comparison rate* - 4 years) (7.59% p.a. comparison rate* – 5 years)
  • Total Home Loan Residential Fixed 2 years and 3 years ≤80% LVR: 20 basis point decrease to 6.49% p.a. (7.86% p.a. comparison rate* - 2 years) (7.75% p.a. comparison rate* - 3 years)
  • Total Home Loan Residential Fixed 1 year, 4 years, 5 years >80% LVR: 10 basis point decrease to 6.79% p.a. (8.02% p.a. comparison rate* - 1 year) (7.75% p.a. comparison rate* - 4 years) (7.68% p.a. comparison rate – 5 years)
  • Total Home Loan Residential Fixed 2 years, 3 years >80% LVR: 20 basis point decrease to 6.69% p.a. (7.90% p.a. comparison rate* - 2 years) (7.81% p.a. comparison rate* - 3 years)

Beyond Bank’s Home Loan Investment Fixed Loans have also fallen between 10 and 20 basis points this week.

A standard one-year fixed rate for an investment mortgage is down 10 basis points to 7.39% p.a. (8.86% p.a. comparison rate*).

The fixed rate for two and three-year investment mortgages was cut by 20 basis points to 7.29% p.a. (8.68% p.a. comparison rate* - 2 year) (8.52% p.a. comparison rate* - 3 year).

ME Bank ups basic and flexible home loan interest rates by 10 basis points

ME Bank has hiked the interest rates on its Basic variable rate home loan and eight of its Member Package Flexible principal and interest home loans.

ME Bank’s Basic Home Loan Owner Occupier features a fee-free cash redraw and no annual or monthly fees.

Its Flexible Member Package loans have an annual fee of $395 and incorporate an offset account. Here are the changes:

  • Basic Home Loan Owner Occupier, P&I <80% LVR 150k+: 10 basis point increase to 6.17% p.a. (6.19% p.a. comparison rate*)
  • Member Package Flexible Home Loan, P&I <50-60% LVR 400k+: 10 basis point increase to 6.19% p.a. (6.58% p.a. comparison rate*)
  • Member Package Flexible Home Loan, P&I 60-80% LVR 400k+: 10 basis point increase to 6.24% p.a. (6.63% p.a. comparison rate*)

ME Bank's Member Package loans include a waiver of the $200 the valuation fee and any additional fees for so-called top-ups ($250) that provide the borrower with access to the equity in their home.

Other movers

  • Summerland Bank cuts fixed rates by up to 20bps
  • Auswide Bank varies fixed rates by up to 40bps

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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.





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