Another week, another round of home loan rate cuts as the November monetary policy decision edges closer.
This time last week, a Melbourne Cup Day hold looked a fairly safe bet, but after President Trump's latest tariff announcements and the upside surprise in the September unemployment figures the meeting looks a little more live.
Mortgage rates continue to come down regardless, this week seeing Suncorp and Bankwest cut rates as well as several smaller lenders adding to the pile of products with advertised rates below 5% p.a.
Suncorp varies fixed rates by up to 0.40% (Home Package Plus)
| Product | Rate Change |
|---|---|
| One year fixed (LVR ≤80%) | Down 40 bps to 5.19% p.a (5.84% p.a comparison rate*). |
| One year fixed (LVR >80%) | Down 40 bps to 5.19% p.a (6.09% p.a comparison rate*). |
| One year fixed (Investment, LVR ≤80%) | Down 40 bps to 5.34% p.a (5.88% p.a comparison rate*). |
| One year fixed (Investment, LVR >80%) | Down 40 bps to 5.34% p.a (6.41% p.a comparison rate*). |
| Two year fixed (LVR ≤80%) | Up 10 bps to 4.89% p.a (5.75% p.a comparison rate*). |
| Two year fixed (LVR >80%) | Up 10 bps to 5.09% p.a (6.01% p.a comparison rate*). |
| Two year fixed (Investment, LVR ≤80%) | Up 10 bps to 4.99% p.a (5.80% p.a comparison rate*). |
| Two year fixed (Investment, LVR >80%) | Up 10 bps to 5.19% p.a (6.31% p.a comparison rate*). |
| Five year fixed (LVR ≤80%) | Down 20 bps to 5.39% p.a (5.82% p.a comparison rate*). |
| Five year fixed (LVR >80%) | Down 20 bps to 5.59% p.a (6.06% p.a comparison rate*). |
| Five year fixed (Investment, LVR ≤80%) | Down 20 bps to 5.54% p.a (5.90% p.a comparison rate*). |
| Five year fixed (Investment, LVR >80%) | Down 20 bps to 5.74% p.a (6.32% p.a comparison rate*). |
Suncorp cut one and five year fixed rates on Friday, while increasing two year fixed rates by 0.10%.
The two year fixed products are still the lowest rates at Suncorp, but the increase takes the lowest owner occupier rate up to 4.89% p.a. when it was previously 4.79% p.a.
That's now equal to the lowest rates at ING Bank and Bank of Queensland, which are both also for two years' fixed.
Suncorp also cut interest-only rates significantly, both fixed and variable, with its lowest variable IO rate for owner occupiers now 5.69% p.a. (5.52% p.a. comparison rate*) for LVR up to 60%.
For investors, the lowest variable IO rate is even lower, dropping to 5.65% p.a. (5.56% p.a. comparison rate*), also for LVR up to 60%.
That's only 0.16% higher than the lowest rate at Auswide Bank, currently the lowest variable IO investor rate in our database at 5.49% p.a. (5.52% p.a. comparison rate*).
For new ANZ CEO Nuno Matos, Suncorp's integration with ANZ is becoming a top priority.
Bankwest cuts variable rates 10 bps
| Product | Rate Change |
|---|---|
| Complete Variable Home Loan, LVR up to 80% | Down 10 bps to 5.49% p.a (5.89% p.a comparison rate*). |
| Simple Variable Home Loan, LVR up to 80% | Down 10 bps to 5.49% p.a (5.52% p.a comparison rate*). |
CommBank owned Bankwest cut variable rates last week, dropping its OO rate for LVR up to 80% down to 5.49% p.a.
The lowest variable OO rate at Bankwest remains 5.44% p.a. (5.47% p.a. comparison rate*) for LVR up to 60%, which still isn't quite as low as Commonwealth Bank's lowest variable rate - 5.34% p.a. (5.47% p.a. comparison rate*) on the Digi Home Loan, also for LVR up to 60%.
Latest products under 5%
A few months ago advertised rates starting with a 4 were rarer than cartons of eggs for under $6, but the aftermath of the August rate cut has seen a wave of new lenders dropping fixed and even a few variable rate products below 5%.
This week saw Illawarra Credit Union join the party with two and three year fixed OO rates now 4.99% p.a. (5.25% p.a. comparison rate*) and 4.94% p.a. (5.21% p.a. comparison rate*) respectively, both for LVR up to 80%.
Community First Bank also dropped two and three year fixed rates under the 5% mark, with its lowest OO rate now 4.89% p.a. (5.61% pa. comparison rate*) for three years fixed with the Boost Package (LVR up to 80%).
Finally, Pacific Mortgage Group cut its lowest two year fixed rate further below the 5% mark, dropping to 4.74% p.a. (5.07% p.a. comparison rate*).
Read more: Home loans below 5% p.a.
Other movers
- Bank First cut fixed rates by up to 0.45%
- MOVE Bank cut variable rates to a new low of 5.24% p.a. (5.29% 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 |
