- AMP Bank has cut fixed rates on its Professional Package rates by up to 0.15%.
- Variable rates were also adjusted, with some interest-only rates up slightly but P&I rates down.
- The RBA will meet again next week, but markets and economists don't expect further relief for mortgage holders.
AMP cut fixed-rates for investors on its Professional Package products by up to 15 bps, while for owner occupiers interest-only rates were dropped 0.10%.
Meanwhile, variable rates for owner occupiers with a loan size above $1 million were raised slightly, up 0.04% to 5.43% p.a. (5.79% p.a. comparison rate*).
Both OO and investment interest-only variable rates were cut 0.05% for loans sized between $500k and $1m, LVR up to 80%.
These changes come amid mounting expectation that the RBA will disappoint mortgage holders and vote to keep the cash rate at 3.60% when it meets on 30 September.
According to the ASX RBA rate tracker just 10% of the market expected a 0.25% cut, which would drop the cash rate to where it was in February 2023.
Economists from all four major banks also expect the RBA to hold fire, with the labour market still tight and a stronger household spending recovery than expected.
The last major piece of relevant data before the September decision will be the monthly CPI inflation indicator for August, set for release on Wednesday, but Governor Michele Bullock has said the Board considers the more comprehensive quarterly read a more definitive measure of how prices are increasing.
AMP Bank variable rate changes
| Product | Rate change |
|---|---|
| Professional Package Owner Occupied IO 5 yrs (LVR ≤60%, $500k–$1m) | Down 5 bps to 5.64% p.a. (5.88% p.a. comparison rate*) |
| Professional Package Owner Occupied IO 5 yrs (LVR 60–80%, $500k–$1m) | Down 5 bps to 5.69% p.a. (5.90% p.a. comparison rate*) |
| Professional Package Owner Occupied P&I (LVR ≤60%, $1m+) | Up 4 bps to 5.43% p.a. (5.79% p.a. comparison rate*) |
| Professional Package Owner Occupied P&I (LVR 60–80%, $1m+) | Up 4 bps to 5.43% p.a. (5.79% p.a. comparison rate*) |
| Professional Package Investment Variable IO (LVR ≤60%, $500k–$1m) | Down 5 bps to 5.64% p.a. (5.97% p.a. comparison rate*) |
| Professional Package Investment Variable IO (LVR 60–80%, $500k–$1m) | Down 5 bps to 5.69% p.a. (6.02% p.a. comparison rate*) |
The new lowest variable rate at AMP Bank is now 5.43% p.a. after the slight increase to Professional Package rates.
For customers with loans between $750,000 and $1 million, that rate is also available on the Essential home loan product (5.46% p.a. comparison rate*) for LVR up to 80%.
At the time of writing, the lowest standard variable rate in the Savings.com.au database is 5.14% p.a. (5.54% p.a. comparison rate*) from Freedom Lend for LVR up to 70%.
Read more: AMP Bank home loans review
AMP Bank fixed rate changes
| Product | Rate change |
|---|---|
| Professional Package Residential Fixed IO 1 yr (LVR ≤80%) | Down 10 bps to 5.45% p.a. (6.48% p.a. comparison rate*) |
| Professional Package Residential Fixed IO 2 yrs (LVR ≤80%) | Down 10 bps to 5.34% p.a. (6.36% p.a. comparison rate*) |
| Professional Package Residential Fixed IO 3 yrs (LVR ≤80%) | Down 10 bps to 5.44% p.a. (6.29% p.a. comparison rate*) |
| Professional Package Residential Fixed IO 5 yrs (LVR ≤80%) | Down 10 bps to 5.74% p.a. (6.25% p.a. comparison rate*) |
| Professional Package Investment Fixed IO 1 yr (LVR ≤80%) | Down 10 bps to 5.45% p.a. (6.48% p.a. comparison rate*) |
| Professional Package Investment Fixed IO 2 yrs (LVR ≤80%) | Down 10 bps to 5.34% p.a. (6.36% p.a. comparison rate*) |
| Professional Package Investment Fixed IO 3 yrs (LVR ≤80%) | Down 10 bps to 5.44% p.a. (6.29% p.a. comparison rate*) |
| Professional Package Investment Fixed IO 5 yrs (LVR ≤80%) | Down 10 bps to 5.74% p.a. (6.25% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 1 yr (LVR ≤80%) | Down 15 bps to 5.30% p.a. (6.47% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 2 yrs (LVR ≤80%) | Down 15 bps to 5.19% p.a. (6.34% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 3 yrs (LVR ≤80%) | Down 10 bps to 5.29% p.a. (6.25% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 5 yrs (LVR ≤80%) | Down 15 bps to 5.69% p.a. (6.24% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 1 yr (LVR 80–90%) | Down 15 bps to 5.50% p.a. (6.59% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 2 yrs (LVR 80–90%) | Down 15 bps to 5.39% p.a. (6.47% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 3 yrs (LVR 80–90%) | Down 10 bps to 5.49% p.a. (6.39% p.a. comparison rate*) |
| Professional Package Investment Fixed P&I 5 yrs (LVR 80–90%) | Down 15 bps to 5.89% p.a. (6.39% 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 | 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 |
