Key points
  • NAB cut home loan rates for some owner occupiers and investors by nearly 1% this week
  • Westpac joined in on the action, cutting rates on some home loan products by up to 25 basis points 
  • Bendigo Bank was just behind, slashing certain rates to as low as 5.89% p.a. 
  • AMP Bank also made interest rate moves, shaking home loan rates up by as much as 50 basis points

NAB, Westpac, and Bendigo Bank all joined in on home loan rate changing action this week, despite the cash rate remaining frozen.

The Reserve Bank of Australia (RBA) has held the cash rate steady at 4.10% for three consecutive months now.

Many experts believe we’ve hit the interest rate ceiling, tipping the next move from the central bank to be a cut.

Here are some of the major changes Aussies in the market for a new home loan will want to know about.

But before we get into it, it’s important to note these changes will impact new customers only. Existing customers might find their home loan interest rate is unchanged or impacted by different changes.

NAB drops home loan interest rates by 96 basis points

NAB led the pack this week, dropping the interest rates on some of its fixed and variable products by close to a whole percentage point.

Take a look at some of the newly lowered rates available to investors or owner occupiers:

  • Investor Base Variable Rate Principal and Interest (P&I) ≤90% loan-to-value ratio (LVR): 96 basis point decrease to 7.01% per annum (p.a.)(7.05% p.a. comparison rate*)
  • Base Variable Rate Interest Only (IO) ≤95% LVR: 33 basis point decrease to 7.69% p.a. (7.06% p.a. comparison rate*)
  • Tailored Fixed P&I 2 years ≤60% LVR and 60-70% LVR: 35 basis point decrease to 6.19% p.a. (7.17% p.a. comparison rate*)
  • Tailored Fixed P&I 2 years 70-80% LVR and 80-90% LVR: 35 basis point decrease to 6.24% p.a. (7.34% p.a. comparison rate)

See also: What is a comparison rate?

Westpac shifts fixed rates by up to 25 basis points

Westpac wasn’t about to let its big four bank peer get all the glory. It varied two-year fixed rates on many of its investment home loan products.

Those eyeing a Westpac investment home loan might be interested to learn of these drops:

  • Premier Advantage Investment Fixed IO 2 years 70-80% LVR: 25 basis point decrease to 6.44% p.a. (8.07% p.a. comparison rate*)
  • Investment Fixed IO 2 years ≤70% LVR: 25 basis point decrease to 6.64% p.a. (8.92% p.a. comparison rate*)
  • Premier Advantage Investment Fixed P&I 2 years 70-80% LVR: 20 basis point decrease to 6.39% p.a. (7.86% p.a. comparison rate*)
  • Investment Fixed P&I 2 years 80-95% LVR: 20 basis point decrease to 6.59% p.a. (8.71% p.a. comparison rate*)

Bendigo Bank slashes home loan rates

Bendigo Bank cut many of its variable home loan interest rates by as much as 20 basis points.

Take a look at some of the highlights for property investors and owner occupiers:

  • Investment Complete Home Loan Variable P&I <60% LVR: 20 basis point decrease to 5.99% p.a. (6.21% p.a. comparison rate*)
  • Complete Home Loan Variable P&I <60% LVR: 15 basis point decrease to 5.89% p.a. (6.11% p.a. comparison rate*)
  • Investment Complete Home Loan Variable P&I 80-90% LVR: 20 basis point decrease to 7.54% p.a. (7.76% p.a. comparison rate*)
  • Complete Home Loan Variable P&I 80-90% LVR: 15 basis point decrease to 7.24% p.a. (7.46% p.a. comparison rate*)

AMP Bank shifts variable and fixed rates by up to 50 basis points

The final interest rate movements mentioned here this week came from AMP Bank. It shook things up for many of its home loan products this week, making rate moves as large as 50 basis points.

Take a look at some of the highlights:

  • Professional Package Residential Fixed P&I 1 year ≤80% LVR: 40 basis point decrease to 6.49% p.a. (6.86% p.a. comparison rate*)
  • Basic Variable Loan P&I 80-90% LVR: 50 basis point increase to 7.39% p.a. (7.44% p.a. comparison rate*)
  • Basic Fixed P&I 3 years ≤90% LVR: 50 basis point increase to 7.24% p.a. (7.40% p.a. comparison rate*)
  • Essential Home Loan 60-80% LVR $750k+: 10 basis point increase to 6.09% p.a. (6.12% 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 Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.94% p.a.
5.98% p.a.
$2,978
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.89% p.a.
5.80% p.a.
$2,962
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • 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.
 Disclosure
5.99% p.a.
6.02% p.a.
$2,995
Principal & Interest
Fixed
$0
$0
60%
  • Owner Occupier
  • Fixed 3 Years
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
  • Competitive rates to help you save
  • A Dedicated Relationship Manager
  • Certainty of repayments with a fixed rate term
 Disclosure
5.93% p.a.
5.93% p.a.
$2,975
Principal & Interest
Variable
$0
$395
70%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 30% Min Deposit
  • Redraw
  • More details
 Disclosure
More home loans
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
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