Member-owned banks lead charge in cutting home loan rates

It was a fairly subdued week for home loan rate changes after some large institutions made changes last week.

St. George also introduced a special LMI offer, reducing the insurance to just $1 for those with a loan-to-value ratio (LVR) up to 85%.

This week, a few member-owned institutions cut home loan interest rates across a variety of home loans for investors and owner-occupiers, across both principal and interest (P&I) and interest-only (IO) payment terms.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner-occupiers.

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Reliance Bank

Reliance Bank made quite a few rate changes today, mostly by 25 basis points. However, one loan was cut by 55 basis points.

That 55 point cut goes to the First Rate Investment loan paying interest only (special offer), now 3.64% p.a. (4.36% p.a. comparison rate*)

A couple of other key cuts for owner-occupiers paying P&I were:

• FHB First Rate Special 70%: 25 basis point cut to 2.80% p.a. (2.86% p.a. comparison rate*)
• All In One Rewards Package 750k+:  25 basis point cut to 3.40% p.a. (3.83% p.a. comparison rate*)

Keep in mind special offers can be withdrawn at any time.

People's Choice Credit Union

People's Choice made just one cut today, reducing its variable Home Loan Package for investors as a special offer by 27 basis points.

The rate is now 3.53% p.a. (3.93% p.a. comparison rate*)

Hunter United

Hunter United also made just one cut, reducing its owner-occupier loan fixed for two years by 10 basis points.

The interest rate is now 2.39% p.a. (3.81% p.a. comparison rate*)

The table below features home loans with some of the lowest fixed interest rates on the market for owner occupiers.

UBank, Reduce also cut home loan rates

In the past week, both UBank and Reduce cut a fairly wide variety of home loan rates.

UBank

UBank cut by between 10 and 15 basis points after it reduced some home loan rates last week too.

Some key cuts from UBank this week were:

• Discount Offer Owner-Occupier P&I: 10 basis point cut to 2.49% p.a. (2.49% p.a. comparison rate*)
• Discount Offer Investor Variable P&I: 10 basis point cut to 2.89% p.a. (2.89% p.a. comparison rate*)
• Discount Offer Investor Variable IO: 15 basis point cut to 3.29% p.a. (3.16% p.a. comparison rate*)

Keep in mind offers and discounted rates can end at any time.

Reduce Home Loans

Reduce cut a handful of loans for owner-occupiers by up to 10 basis points. Some key cuts were:

• Low Rider Variable 70%: 4 basis point cut to 2.25% p.a. (2.28% p.a. comparison rate*)
• Rate Lovers 80%: 10 basis point cut to 2.39% p.a. (2.42% p.a. comparison rate*)

Meanwhile, Reduce also raised rates slightly on a couple of home loans:

• Low Rider Variable 70% IO Offset: 6 basis point rise to 2.60% p.a. (2.62% p.a. comparison rate*)
• Investor Rate Lovers 90%: 10 basis point rise to 3.19% p.a. (3.19% p.a. comparison rate*)

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