The four lenders join Westpac, Bank of Us, Teachers Mutual, Great Southern Bank and Qudos Bank in the variable-rate cutting chorus in recent weeks.

In March 2020, fixed rate loans made up just 13% of the value of new lending, while recent ABS data shows they now make up nearly half.

This was off the back of record low interest rates, and low-cost Reserve Bank funding handed to banks over a period of three years, which one lending executive said helped fuel the latest housing boom.

On Wednesday UBank made changes to its two 'UHomeLoan' variable-rate products for owner occupiers, with rates slightly different depending on the loan-to-value ratio, or LVR:

  • 80% LVR: 15 basis point cut to 2.19% p.a. (2.19% p.a. comparison rate*)
  • 85% LVR: 15 basis point cut to 2.34% p.a. (2.34% p.a. comparison rate*)

In August, UBank also lowered variable rates for investors by up to 19 basis points.

UBank is one of the few lenders that waives lenders mortgage insurance (LMI) for borrowers with a 15% deposit, which the NAB-owned outfit says could save borrowers $5,000 in LMI costs on the 'average' home loan of $480,000.

On Thursday, Bank Australia also cut a swathe of interest rates across its suite of 'Basic' variable-rate home loan products. Some of the more noteworthy changes include:

  • Basic 60%: 20 basis point cut to 2.35% p.a. (2.39% p.a. comparison rate*)
  • Basic 80%: 20 basis point cut to 2.50% p.a. (2.54% p.a. comparison rate*)
  • Inv Basic 60%: 10 basis point cut to 2.65% p.a. (2.69% p.a. comparison rate*)
  • Inv Basic 80%: 10 basis point cut to 2.80% p.a (2.84% p.a. comparison rate*)

Bank Australia's 80% LVR loan for owner occupiers also applies to Government-guaranteed loans for first home buyers with a 5% deposit.

On Monday, MyState Bank also decreased rates on various variable-rate home loans for investors. Some key changes include:

  • Investment 60%: 10 basis point cut to 2.44% p.a. (2.50% p.a. comparison rate*)
  • Investment 80%: 10 basis point cut to 2.54% p.a. (2.60% p.a. comparison rate*)

These are special offers, meaning they could be withdrawn at any time.

Meanwhile, on Friday Illawarra Credit Union cut its owner occupier variable-rate 'The Works Package' home loan by 75 basis points for new borrowers paying interest-only.  

The rate is now 2.50% p.a. (3.01% p.a. comparison rate*).

'The Works Package' includes a 100% offset account, redraw facility, credit card, and the option to split the loan between fixed and variable rates.

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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.

Rates
Features
Fees
Other
Lender
VariableMore details
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
More details
VariableMore details
Refinance OnlyApply In Minutes
  • 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.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • 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.
More details
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
More details
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 10, 2023. View disclaimer.

Image by 3D Animation Production Company on Pixabay



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