It was smaller lenders who tweaked their home loan rates, most heading north although not by large margins.

On Tuesday, the Reserve Bank of Australia released the minutes of its May board meeting revealing it had considered raising the cash rate but decided the case for keeping it on hold was stronger.

ANZ noted the "hawkish tinge" to the minutes that wasn't as evident in governor Michele Bullock's post-meeting media conference on 7 May.

Some commentators suggested it may have been designed to again remind the punters that any silly spending might drive up inflation and keep rates on hold for longer.

The RBA has been monotonous in telling us it needs inflation at its 2-3% target range before it will consider a drop to the cash rate.

But home lenders are always doing their own thing in the interim.

Let's check the action on the mortgage market this week.

Horizon Bank drops variable, lifts fixed rates

The bank springing from the south coast of New South Wales has chopped 10 basis points from its Home Sweet Home Discount Variable principal and interest (P&I) and interest only (IO) loans for owner occupiers and investors.

It takes Horizon Bank's variable rate for an owner occupier P&I loan with loan-to-value ratio (LVR) ≤70% under the 6% mark.

Here are the new rates for Home Sweet Home owner occupier loans:

Product Change (%) New rate Comparison rate*
Home Sweet Home Discount Variable P&I LVR ≤70% -0.10 5.99% p.a. 6.61% p.a.
Home Sweet Home Discount Variable P&I LVR >70% -0.10 6.14% p.a. 6.67% p.a.

Home Sweet Home Discount Variable IO LVR ≤70%

 -0.10 6.19% p.a. 6.80% p.a.
Home Sweet Home Discount Variable IO LVR >70% -0.10 6.34% p.a. 6.95% p.a.

Bank of Sydney edges basic home loans higher

The Australian subsidiary of the Bank of Beirut adjusted its rates on Monday, adding five basis points to its BOS Basic Home Loan P&I products while cutting its Basic Investment IO loans by 10 basis points.

Despite that, Bank of Sydney's Basic Home Loan rates remain at the competitive end of the market.

Product Change (%) New rate Comparison rate*
BOS Basic Home Loan P&I ≤50% +0.05 6.14% p.a. 6.18% p.a.
BOS Basic Home Loan P&I 50-60% +0.05 6.14% p.a. 6.18% p.a.
BOS Basic Home Loan P&I 60-70% +0.05 6.14% p.a. 6.18% p.a.
BOS Basic Home Loan P&I >70% +0.05 6.14% p.a. 6.18% p.a.

Some of Bank of Sydney's Expect More owner occupier Home Loans with offset and redraw facilities also took a 15-basis point hike.

Beyond Bank drops fixed rates

The mutual bank has defied the trend of recent weeks by dropping a range of its fixed rate home loans while most lenders have been going the other way with fixed rates.

Beyond Bank has cut Residential and Investment fixed rates across P&I and IO loans.

Its Total Home Loan Residential loan package for loan-to-value ratio ≤80% is now 6.19% p.a. fixed for one and two years (7.96% comparison rate* - one year; 7.80% p.a. comparison rate* - two years).

Newcastle Permanent hikes 5 bp

The customer-owned institution added five basis points to the rates across a range of its Residential and Investment Premium Plus Package Variable and Real Deal products.

Its best new rate after the rise is 6.14% p.a. (6.48% p.a. comparison rate*) on its Premium Plus Package Variable P&I deal for LVR <80% Special Offer for loan amounts of $150,000 or more.

Big jump for Queensland Country fixed rates

There was no mucking around with fixed rates at Queensland Country Bank this week with a swag of its owner occupier and investor loans rising 30 basis points across the board.

The increase was levied on its fixed rate and fixed Package P&I and IO loans for terms up to three years.

Advertisement

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%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
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 Filter Grade on Unsplash



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy