A few more lenders passed on home loan rate cuts in the past week, over a month on from the emergency RBA rate cut in March.

Last week, People's Choice Credit Union was one of the only ones to make cuts - but others joined the party this week.

Lenders such as Bank of Sydney, Bankwest, Bank First and various mutuals cut home loan interest rates - primarily in the fixed rate sector.

Bank of Sydney

Last Friday, Bank of Sydney made cuts to quite a few of its fixed residential and investment loans. Key cuts were:

  • Expect More Residential Fixed 5 Years (No Fee): 97 basis point cut to 2.99% p.a. (2.98% p.a. comparison rate*)
  • Expect More Investment Fixed 5 Years: 91 basis point cut to 3.35% p.a. (3.85% p.a. comparison rate*)

Expect More Residential 1 and 2 year fixed rates also got a haircut by 87 basis points - now down to 2.79% p.a. (2.95% p.a. and 2.93% p.a. comparison rates* respectively).

For the Expect More packaged home loans, borrowers must have an LVR of 70% i.e. a 30% deposit.

Bankwest

Bankwest's biggest cuts were to its fixed loans, paying principal and interest (P&I).

  • Complete Home Loan Fixed Investment 3 Years P&I: 20 basis point cut to 2.49% p.a. (3.98% p.a. comparison rate*)
  • Fixed Rate Investment 3 Years P&I: 20 basis point cut to 2.69% p.a. (4.75% p.a. comparison rate*)

The Complete Home Loan is a packaged product that includes a credit card and offset account options.

Bank First

Bank First cut a range of fixed home loans 60 basis points, both for owner occupiers and investors. Key cuts were:

  • Premier Package O/O 1 Year P&I 80%: 2.29% p.a. (3.40% p.a. comparison rate*)
  • Premier Package O/O 2 Years P&I 80%: 2.29% p.a. (3.34% p.a. comparison rate*)
  • Premier Package Inv 1 Year P&I 80%: 2.59% p.a. (3.83% p.a. comparison rate*)
  • Premier Package Inv 2 Years P&I 80%: 2.59% p.a. (3.75% p.a. comparison rate*)

The Premier Package includes redraw and offset facilities, early payments capability and the ability to borrow up to 85% LVR with no lenders mortgage insurance.

The Mutual Bank

The Mutual cut home loan rates by up to 70 basis points, mainly in the fixed realm paying P&I. Key cuts were:

  • Package Home Loan Premium Fixed 1 Year 150k+: 70 basis point cut to 2.29% p.a. (3.78% p.a. comparison rate*)
  • Premium Fixed 1 Year: 70 basis point cut to 2.39% p.a. (3.99% p.a. comparison rate*)
  • Package Home Loan Inv Premium Fixed 1 Year 150k+: 5 basis point cut to 3.29% p.a. (4.23% p.a. comparison rate*)
  • Investor Premium Fixed 1 Year: 5 basis point cut to 3.39% p.a. (4.45% p.a. comparison rate*)

The Package home loans include offset accounts, a redraw facility and discounted access to other products.

G&C Mutual Bank

G&C Mutual cut home loan rates by up to 40 basis points.

The home loans to get some love were, you guessed it, fixed loans, primarily for investors. Key cuts were: 

  • Investment Standard Fixed P&I 5 Years: 40 basis point cut to 3.39% p.a. (3.45% p.a. comparison rate*)
  • Investment Standard Fixed P&I 1 Year: 30 basis point cut to 2.99% p.a. (3.04% p.a. comparison rate*)

Various other investment loans fixed from 1-5 years also saw cuts, including those paying interest-only.

Australian Unity

Australian Unity cut a range of home loans for both owner occupiers and investors, and all by 10 basis points. Key cuts were:

  • Health Wealth Happiness Fixed 1 Year P&I: 2.59% p.a. (3.29% p.a. comparison rate*)
  • Health Wealth Happiness Fixed 3 Years P&I: 2.59% p.a. (3.24% p.a. comparison rate*)
  • Wealth Builder Investor Fixed 1 Year P&I: 2.95% p.a. (3.62% p.a. comparison rate*)
  • Wealth Builder Investor Fixed 3 Years P&I: 2.95% p.a. (3.57% p.a. comparison rate*)

These are package home loans. The Health Wealth Happiness package includes discount rates on other products, as well as up to $1,250 for couples/families for Australian Unity private health cover. 

The Wealth Builder package also includes private health discounts, optional credit card with no annual fee and more.



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