RBA cut sparks competition, small lenders trim up to 1.35% off fixed mortgages
A handful of lenders have begun implementing the 25 basis point cut to variable home loan customers, with CBA and ANZ the first of the Big Four to move.
And while they are not the earliest to pass on the full cut, Macquarie beat the four majors on speed, they are at least not pushing it to three weeks after the RBA announcement like some.
See the full list of lenders passing on the cash rate cut to variable home loan customers
Summerland trims up to 135 bps from variable-rate home loans
Alongside passing on the 25 bps cut to variable home loan customers this week, some lenders have gone further, trimming rates on certain mortgage products by more than the RBA's move.
Summerland Bank slashed up to 1.35% p.a. from its Investment Premium Home Loan with a maximum of 95% loan-to-value ratio (LVR), bringing the rate down to 6.24% p.a. (comparison rate 6.61% p.a.).
Meanwhile, 95 basis points were taken off the Investment Basic Home Loan up to 95% LVR, now 6.09% p.a. (comparison rate 6.24% p.a.).
Summerland also cut 40 basis points from its Eco Home Loan to 5.79% p.a. (comparison rate 5.84% p.a.) for owner occupiers building or buying environmentally sustainable properties with up to 95% LVR.
Following the 25 bps cut, the lowest OO rate available from the bank is currently available through its Eco Home Loan Special Offer with a maximum 60% LVR, at 5.19% (comparison rate 5.24% p.a.), while the equivalent investor rate is 5.44% p.a. (comparison 5.49% p.a.).
Fixed rate cuts this week
With most major economists forecasting another cash rate cut in November at near-certainty, small member-owned banks and credit unions are pre-emptively slashing fixed rates in an apparent attempt to win borrowers willing to lock in.
Fixed home loans boomed during the pandemic but have since lost appeal amid RBA rate cuts.
As at September 2024, fixed-rate home loans accounted for just 2.59% of mortgage commitments in Australia, according to the ABS, which has since discontinued releasing this data.
Despite all that, these lenders are offering aggressive home loan deals.
Reduce Home Loans rolls out reduced fixed rates
Aside from its variable rate drops, Reduce Home Loans has also cut a select range of its fixed mortgage products.
The non-bank lender lowered its 2-year Basic Home Loan Fixed with 60% LVR for owner occupiers to 4.99% p.a. (comparison rate 5.74% p.a.).
Reduce also cut the rate on its 2-year Basic Home Loan Investment with up to 60% LVR to 5.14% p.a. (comparison rate 5.95% p.a.).
Easy Street Fin Services offers a 4.89% p.a. fixed home loan rate
Easy Street Financial Services, the online banking division of Community First Credit Union, now offers a 30-year fixed rate of 4.89% p.a. (comparison rate 5.26% p.a.) for customers paying principal and interest (P&I) with a maximum of 80% LVR.
Northern Inland CU dips under 5%
Northern Inland CU also enters the sub-5% fixed rate market, after cutting 30 basis points from its Smart Home Loan 3-year Special to 4.99% p.a. (comparison rate 6.51% p.a.).
The "special" offer is exclusively available to new customers with an LVR of 80% or below.
Queensland Country Bank cuts fixed home loans
Customer-owned Queensland Country Bank applied a uniform 20 bps cut across its fixed product suite for owner-occupiers and investors.
Its 3-Year Fixed Rate Package Home Loan now sits at 5.19% p.a. (comparison 7.32% p.a.) for borrowers with up to 80% LVR.
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Looking to see how your bank or lender stacks up after the RBA rate cut? Below is a selection of competitive variable rates for owner occupiers.
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