Home News Bank of China, The Mutual Bank cut home loan rates

Bank of China cut IO investment rates, new cashback offer

The RBA may have held on Tuesday but lenders continue to bring down mortgage rates, with several rate cuts including a notable new interest only rate from Bank of China.

By Harry O'Sullivan

First published on 04 Apr 2025

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Bank of China cut IO investment rates, new cashback offer

Both variable and fixed rates are still being cut even though the cash rate will remain at 4.10% at least until mid-May.

The majors mostly held their fire this week, but given markets are estimating a 79% chance of a May cut (as of 2 April) there's a strong possibility the coming weeks will see more activity.

Medium term Australian Government bond yields have gone down significantly over the past couple of weeks and may fall further after the 'Liberation Day' tariffs were revealed - this could lead to lower cost of funding for lenders, and lower fixed rates.

Here were the major rate changes in the week past:

Bank of China cuts interest only investment rates

Bank of China trimmed its discount interest only investment rate 10 bps to a new variable rate of 6.08% p.a. (6.27% p.a. comparison rate*).

That rate's available for loans above $250,000, with a max LVR of 90%, and is one of the lowest interest only options for investors on the Australian market at the moment.

Tiimely launch $2,000 cashback

Digital lender Tiimely also announced this week it will introduce a new cash incentive for refinancers to switch over.

Borrowers with an LVR below 90% and a loan balance above $500,000 who choose the two year fixed rate at Tiimely may be eligible to receive $2,000 just for switching over.

That's available for both owner occupiers and investors, and while not the highest cashback offer on market, does hold the distinction of being the only to apply for borrowers with an LVR above 80%.

Other movers

The Mutual Bank cut fixed rates up to 20 bps
Summerland Bank cut one year fixed rates by up to 15 bps

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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.

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Row Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.79% p.a.	5.83% p.a.	$2,931	Principal & Interest	Variable	$0	$530	90%	Only 10% deposit required 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. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.74% p.a.	5.65% p.a.	$2,915	Principal & Interest	Variable	$0	$0	80%	100% owned 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.	More details	Compare	Promoted	Disclosure
Ubank (part of NAB)	Ubank (part of NAB) Flex variable home loan - 100% offset	5.84% p.a.	6.08% p.a.	$2,947	Principal & Interest	Variable	$250	$250	60%	100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	Disclosure

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 . View disclaimer.

Important Information and Comparison Rate Warning

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Harry O'Sullivan

Harry joined Infochoice Group in November 2022 as a financial journalist. He's fascinated by economics, having completed a Bachelors Degree in 2021, and enjoys helping other people try to make sense of the financial system.

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For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*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.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

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.

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