UBank, Macquarie, AMP slash home loan interest rates

Today UBank announced cuts to its 'lowest ever' level on some variable home loans, while also cutting some fixed rates earlier in the week.

Cuts were made to products paying principal and interest (P&I), and interest-only (IO). Some details are:

• Variable Owner Occupied P&I: Down to 2.49% p.a. (2.49% p.a. comparison rate*)
• UHomeLoan Fixed 3 Years P&I: 15 basis point cut to 2.14% p.a. (2.41% p.a. comparison rate*)

New fixed home loans that settle on or before 30 September will also have their $395 lock rate fee waived.

The 2.49% variable rate comes into effect for new customers from 17 July, while existing variable home loan customers will also have their home loans cut by between 10 and 15 basis points, which is unusual unless they renegotiate or the central bank cuts the cash rate.

Macquarie cuts

Yesterday Macquarie made cuts by between five and 30 basis points on a wide variety of home loans. Some key cuts include:

• Basic Variable Owner Occupied 80%: 15 basis point cut to 2.74% p.a. (2.74% p.a. comparison rate*)
• Basic Variable Investment IO 80%: 30 basis point cut to 3.34% p.a. (3.34% p.a. comparison rate*)

AMP cuts

Earlier in the week AMP made cuts by between 23 and 135 basis points, primarily on its 'Professional Package' home loans. Some key cuts are:

• Professional Package Investment Variable P&I 80% 100k+: 135 basis point cut to 3.19% p.a. (3.59% p.a. comparison rate*)
• Professional Package Variable P&I 80% 100k+: 114 basis point cut to 2.73% p.a. (3.14% p.a. comparison rate*)

These new AMP rates are for new borrowers only.

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.

Loan purpose

Refinancing

Loan amount

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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
loans.com.au	loans.com.au Bare Home Loan (Basic OO P&I <90%)	5.94% p.a.	5.98% p.a.	$2,978	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.89% p.a.	5.80% p.a.	$2,962	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	No application or ongoing fees. Annual rate discount Unlimited redraws & additional repayments. LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	Go to site	Compare	Promoted	Disclosure
Regional Australia Bank	Regional Australia Bank Home Loan Fixed (Owner Occupier, Principal and Interest, max lvr 60%) (3 years)	5.99% p.a.	6.02% p.a.	$2,995	Principal & Interest	Fixed			$0	$0	60%				Owner Occupier Fixed 3 Years Principal & Interest 40% Min Deposit Redraw More details	Competitive rates to help you save A Dedicated Relationship Manager Certainty of repayments with a fixed rate term	Go to site	Compare	Promoted	Disclosure
Homestar	Homestar Star Nova LVR <70% (Owner Occupied, Principal and Interest)	5.93% p.a.	5.93% p.a.	$2,975	Principal & Interest	Variable			$0	$395	70%				Owner Occupier Variable Principal & Interest 30% Min Deposit Redraw More details		Go to site	Compare		Disclosure
Reduce Home Loans	Reduce Home Loans EconoME Home Loan (Owner Occupier, Principal & Interest, LVR 60%)	5.99% p.a.	6.01% p.a.	$2,995	Principal & Interest	Variable			$0	$150	60%				$3000 Cashback T&Cs apply Owner Occupier Variable Principal & Interest 40% Min Deposit Redraw More details		Go to site	Compare		Disclosure

More home loans

ME Bank, Qudos Bank and loans.com.au also cut

In the past week, a variety of member-owned banks and challenger brands also cut home loan interest rates.

ME Bank

On Wednesday, ME Bank made some cuts to some fixed investment loans by up to 79 basis points. These cuts are:

• Member Package Fixed 1 Year: 79 basis point cut to 2.89% p.a. (3.68% p.a. comparison rate*)
• Member Package Fixed 2 Years: 39 basis point cut to 2.79% p.a. (3.63% p.a. comparison rate*)
• Flexible Fixed 1 Year: 79 basis point cut to 3.04% p.a. (4.90% p.a. comparison rate*)
• Flexible Fixed 2 Years: 39 basis point cut to 2.94% p.a. (4.70% p.a. comparison rate*)

These comparison rates apply to borrowers with 80% LVR or lower (at least a 20% deposit). The comparison rate is higher for borrowers with less than a 20% deposit.

Qudos Bank

Qudos Bank made a wide variety of cuts to fixed home loans for both investors and owner-occupiers by 20 basis points. Some key details are below:

• Owner Occupied Fixed P&I 1 Year 80%: Down to 2.29% p.a. (3.02% p.a. comparison rate*)
• Owner Occupied Fixed P&I 3 Years 80%: Down to 2.29% p.a. (2.89% p.a. comparison rate*)
• Investment Fixed P&I 1 Year 80%: Down to 2.59% p.a. (3.32% p.a. comparison rate*)
• Investment Fixed P&I 3 Years 80%: Down to 2.59% p.a. (3.19% p.a. comparison rate*)

Again, these rates apply to borrowers with at least a 20% deposit.

Loans.com.au

On Wednesday, loans.com.au made some cuts on its home loans, including:

• Smart Home Loan 80%: 6 basis point cut to 2.57% p.a. (2.59% p.a. comparison rate*
• Owner-Occupier IO Fixed 2 Years: Down to 2.79% p.a (3.05% p.a. comparison rate*)
• Investor P&I Fixed 2 Years: Down to 2.69% p.a (3.34% p.a. comparison rate*)
• Investor IO Fixed 2 Years: Down to 2.99% p.a (3.38% p.a. comparison rate*)

These fixed-rate discounts are for borrowers with at least a 20% deposit and are available for a limited-time-only for new customers.