The variable 'Ultimate Package' interest rate for both owner occupiers and investors was cut by 50 basis points on Tuesday.

Both rates are now 1.99% p.a. with a 2.39% p.a. comparison rate*.

This is noteworthy because investment home loans under 2% are rare, and investment home loans also usually attract higher fees, which is then reflected in a higher comparison rate.

Fixed loans are also more common in the sub-2% realm.

These rates are available for those paying principal & interest (P&I), and for a maximum loan-to-value ratio (LVR) of 80%.

These home loans are available as special offers, which means they could be withdrawn at any time.

In response to the rate cuts, Cowboys' legend Johnathan Thurston said: "Hahahahahaha"*

(*Didn't actually happen)

More rate cuts for challenger brands

On Friday, MyState Bank cut interest rates on a variety of home loans by between 5 and 15 basis points. 

Some noteworthy changes were: 

  • Investment Basic Variable 80%: 15 basis point cut to 2.64% p.a. (2.67% p.a. comparison rate*)
  • Owner Occupier Basic Variable 80%: 5 basis point cut to 2.39% p.a. (2.42% p.a. comparison rate*)

Heritage Bank also cut rates on a wide variety of home loans by between 5 and 15 basis points. 

Some noteworthy changes were: 

  • Discount Variable 150k+ 80%: 15 basis point cut to 2.44% p.a. (2.49% p.a. comparison rate*)
  • Inv Discount Variable 150k+ 80%: 10 basis point cut to 2.69% p.a. (2.74% p.a. comparison rate*)

The changes in variable loans goes against the grain of rate movements lately; instead, many lenders have been increasing rates to fixed loans in 2021, which generally saw the biggest cuts in 2020.

Photo by Kobokem2021 on Wikimedia Commons

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