Home loan nice list: Which banks are still cutting rates?

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on June 03, 2022 Fact Checked
Home loan nice list: Which banks are still cutting rates?

As attention turns to RBA’s June meeting next week, smaller lenders showed their might, cutting fixed and variable home loan interest rates.

With competition heating up in the home loan space, a number of mutual banks and credit unions proved they are not afraid to remain competitive, slashing both fixed and variable home loan interest rates for owner occupiers and investors.

Community First Credit Union

Leading the charge for the little guys was Community First Credit Union, taking the sword to its principal and interest Accelerator Package Home Loans with a decrease of up to 135 basis points.

For owner occupiers with a loan-to-value ratio (LVR) of up to 95%, Community First cut the variable rate by 125 basis points.

The new rate stands at:

  • 2.49% p.a. (2.93% p.a. comparison rate*)

For investors with a LVR of up to 80%, Community First cut the variable rate by 135 basis points.

The new rate stands at:

  • 2.69% p.a. (3.13% p.a. comparison rate*)

Easy Street

A division of Community First Credit Union, Easy Street has decreased its Street Smart variable home loan product for owner occupiers and investors by 85 basis points.

For owner occupiers and investors with a LVR of 95%, Easy Street’s Street Smart rates now stand at:

  • Street Smart Variable P&I: 2.39% p.a. (2.44% p.a. comparison rate*)
  • Investment Street Smart Variable P&I: 2.39% p.a. (2.44% p.a. comparison rate*)

Unity Bank

The mutual bank decreased interest-only (IO) fixed rate home loans for owner occupiers by up to 99 basis points.

Highlights of these decreases include:

  • First Home Buyer Fixed Rate 1 Year IO 95%: 99 basis point decrease to 2.49% p.a. (2.39% p.a. comparison rate*)
  • Fixed Rate 1 Year IO 95%: 89 basis point decrease to 2.74% p.a. (4.42% p.a. comparison rate*)
  • Fixed Rate 3 Years IO 95%: 24 basis point decrease to 4.19% p.a. (4.50% p.a. comparison rate*)
  • Fixed Rate 5 Years IO 95%: 40 basis point decrease to 4.64% p.a. (4.63% 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.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 June 29, 2022. View disclaimer.


Image by Anna Shvets via Pexels

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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