After a run of generally downward trending home loan rates so far in 2024, particularly for fixed loans, this week’s rate movements are fairly evenly split.
The adjustments come in a week when January’s CPI inflation reading held steady with the December print, indicating an annual inflation rate of 3.4%.
It was below market expectations with inflation remaining at its lowest level since November 2021, buoying forecasts that the Reserve Bank of Australia will drop the cash rate later this year.
On Thursday, official figures showed retail spending recorded an uptick in January after a subdued December, largely due to November online sales now accounting for a larger slice of festive season spending.
Retail trade was flat in trend terms with spending on non-food items up.
Against that backdrop, let’s check which lenders were among the home loan rate movers this week.
Bendigo increases online variable loans
Bendigo Bank is the biggest player adjusting rates this week, increasing its lowest rate, online only Express Variable Principal and Interest (P&I) loans for both owner occupiers and investors with loan-to-value ratios (LVR) up to 90%.
The new rates are as follows:
- Owner Occupier Express Variable P&I, up 4 basis points to 6.01% p.a. (6.14% p.a. comparison rate*)
- Investor Occupier Express Variable P&I, up 7 basis points to 6.29% p.a. (6.42% p.a. comparison rate*)
The movement takes Bendigo’s Express Variable owner occupier rate above the 6% mark.
Beyond Bank cuts fixed, raises variable rates
Beyond Bank has cut the rates on a raft of its fixed term residential and investment loans this week by up to 35 basis points.
Here are some of its new rates on fixed residential loans:
- Residential Fixed 1 year, LVR up to 90%, down 30 basis points to 6.84% p.a. (8.54% p.a. comparison rate*)
- First Home Buyer Scheme, Fixed 1 year, LVR up to 95%, down 30 basis points to 6.29% p.a. (7.97% comparison rate*)
- First Home Buyer Scheme, Fixed 2 years Building Loan, LVR up to 95%, down 30 basis points to 6.49% p.a. (7.86% comparison rate*)
- Total Home Loan, Fixed 1 year, LVR >80%, down 30 basis points to 6.49% p.a. (7.99% p.a. comparison rate)
Beyond Bank’s Total Home Loan Package variable special offer rate for loans less than 60% LVR has gone up 10 basis points to 6.14% p.a. (6.49% p.a. comparison rate*).
Rates on the bank’s Purple Basic Variable loans for LVR ≤60% is also up 10 basis points to 6.14% p.a. (6.17% comparison rate*).
Regional Australia Bank lifts rates
Regional Australia Bank, springing from a former credit union of University of New England staff in Armidale, New South Wales, has also increased rates by nine basis points across the board on its Mortgage Offset P&I and interest only (IO) loans.
Here are bank’s new rates for owner occupier home loans:
- Owner occupier Mortgage Offset P&I LVR 60-70%, 6.05% p.a. (6.08% p.a. comparison rate*)
- Owner occupier Mortgage Offset P&I LVR 70-80%, 6.29% p.a. (6.32% p.a. comparison rate*)
- Owner occupier Mortgage Offset P&I LVR 80-90%, 6.51% p.a. (6.54% p.a. comparison rate*)
- Owner occupier Mortgage Offset P&I LVR >90%, 7.14% p.a. (7.17% p.a. comparison rate*)
Qudos Bank drops fixed rates by 20 basis points
The former Qantas staff credit union is on the descent with its fixed rates, following the trend of many other fixed rate movements so far this year.
Many borrowers are considering alternatives to long-term fixed rate loans with the prospect of interest rates lowering by the end of the year.
Qudos Bank has dropped rates on both its Investment and Owner Occupier four and five-year Fixed P&I and IO loans this week by between 15 and 20 basis points.
Here are the new owner occupier P&I rates:
- Fixed P&I, 4 years, LVR up to 80%, down 15 basis points to 6.14% p.a. (6.27% comparison rate*)
- Fixed P&I, 5 years, LVR up to 80%, down 20 basis points to 6.14% p.a. (6.25% comparison rate*)
Community First increases investor rates by 10-15 basis points
The member-owned bank has upped rates on a range of its investor P&I and IO home loans this week, with a selection of new rates as follows:
- Investment Basic Variable Home Loan P&I LVR up to 95%, up 10 basis points to 6.24% p.a. (6.29% p.a. comparison rate*)
- Investment Basic Variable Home Loan IO LVR up to 95%, up 10 basis points to 6.58% p.a. (6.44% p.a. comparison rate*)
Reduce Home Loans launches new investor loan
Finally, this week, online lender Reduce Home Loans has launched a new Basic Investment home loan with an opening variable rate of 6.25% p.a. (6.27% p.a. comparison rate*).
The new product offers flexible repayments and a redraw facility.
Image by John Schnobrich on Unsplash
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