IMB rate changes
Earlier in the week, some of IMB's rate changes came into effect, cutting by up to 20 basis points. Some key home loans to receive a haircut were:
- Residential Fixed P&I 5 Years: 20 basis point cut to 2.39% p.a. (2.83% p.a. comparison rate*)
- Budget Home Loan P&I 80%: 3 basis point cut to 2.58% p.a. (2.64% p.a. comparison rate*)
- Investment Fixed P&I 3 Years: 15 basis point cut to 2.49% p.a. (3.36% p.a. comparison rate*)
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 |
BOQ rate changes
Bank of Queensland cut rates on a few home loans for investors, including:
- Intro Rate Variable Investment 80%: 25 basis point cut to 2.84% p.a. (3.34% p.a. comparison rate*)
- Intro Rate Variable Investment 90%: 10 basis point cut to 3.14% p.a. (3.39% p.a. comparison rate*)
- Intro Rate Variable Investment IO 80%: 20 basis point cut to 2.99% p.a. (3.37% p.a. comparison rate*)
- Intro Rate Variable Investment IO 90%: 10 basis point cut to 3.24% p.a. (3.41% p.a. comparison rate*)
Note as the name implies, these are two-year introductory rates. After the intro period ends, the advertised rate increases by between 3 and 43 basis points, depending on the home loan.
Bank of Us rate changes
The Tasmania-based lender made quite a few cuts, including one home loan by 59 basis points. Some key rate changes were:
- OO FlexiDiscount 95%: 59 basis point cut to 3.10% p.a. (3.16% p.a. comparison rate*))
- OO FlexiDiscount Fixed 1 Year 80%: 10 basis point cut to 2.19% p.a. (2.51% p.a. comparison rate*)
- Inv FlexiChoice 1 Year 80%: 30 basis point cut to 2.69% p.a. (4.59% p.a. comparison rate*)
Hume Bank rate changes
Hume Bank cut many home loans by between 10 and 30 basis points. Some key ones were:
- Residential Fixed 4 Years P&I: 10 basis point cut to 2.09% p.a. (3.50% p.a. comparison rate*)
- Residential Fixed 4 Years P&I: 10 basis point cut to 2.39% p.a. (3.34% p.a. comparison rate*)
- Flexi Low Rate 70% Special Offer: 20 basis point cut to 2.09% p.a. (2.09% p.a. comparison rate*)
Note with the last one, as it's a special offer, the offer can be withdrawn at any time.
Hume Bank is distinct in the market in that it is one of the only lenders to offer a home loan under 2% for building a home, called the 'HomeBuilder' loan.
Yard rate changes
The online non-bank lender cut a couple of investment home loans, including:
- Investor Home Loan P&I 80%: 22 basis point cut to 2.45% p.a. (2.48% p.a. comparison rate*)
- Investor Home Loan IO 80%: 15 basis point cut to 2.84% p.a. (2.93% p.a. comparison rate*)
Home lending surges in 2020 but investor lending is down
The latest financial aggregates data from the Reserve Bank show strong growth in housing lending throughout 2020, up 3.6% in the year to January 2021 and 0.4% in just one month.
Much of this growth was driven by owner-occupied home loans, which grew by almost 6% to $1.22 trillion (seasonally adjusted).
Investment lending on the other hand struggled, falling by 0.17% over the year to around $665 billion.
The total value of home loans in Australia is now around $1.88 trillion.