This week saw Australia's financial markets forecast four interest rate falls in the next 12 months, starting in February.

It was followed up by the much-anticipated drop in the US benchmark rate on Thursday - a hefty 50 basis point cut to 4.75-5.0%.

That's forecast to kick off a downward run at every US Federal Reserve meeting until the benchmark rate is 3.0-3.25%, a full 225 basis points lower.

But don't expect the Reserve Bank of Australia to be moved by the global economic pacesetter's first interest rate cut in four years.

The RBA board is due to meet in Sydney next week, but no one is expecting any movement on the Australian cash rate.

That hasn't stopped the mortgage market dropping interest rates anyway, particularly fixed home loan rates that have been heading lower over the past couple of months.

This week, Bendigo Bank has slashed more of its fixed home loan rates under the 6% mark - a good place to start this week's mortgage market action.

Bendigo Bank cuts 1- & 2-year fixed rates by 45 bp

Australia's seventh largest home lender dropped its one- and two-year fixed rates on both its Express and Complete home loans to well under 6% for owner occupiers (OO) making principal and interest (P&I) repayments.

The new Bendigo Bank rates are as follows:

Product Change (%) New rate Comparison rate*
Express OO P&I 1-year fixed -0.45 5.84% p.a. 6.19% p.a.
Express OO P&I 2-year fixed -0.45 5.54% p.a. 6.11% p.a.
Complete Fixed 1-year OO -0.45 5.84% p.a. 6.42% p.a.
Complete Fixed 2-year OO -0.45 5.54% p.a. 6.32% p.a.

Bendigo's Express home loan is an online product only.

Borrowers with at least 10% deposit can apply for an Express loan although those with less than 20% deposit will have to pay lenders mortgage insurance (LMI).

Bendigo's Complete home loan offers a full offset facility on both fixed and variable loans.

But while some of Bendigo's fixed rates have plunged, it's also tweaked its Express variable rate eight basis points higher to 6.09% p.a. (6.22% p.a. comparison rate*).

AMP slashes fixed loans under 6%

AMP Bank has made significant cuts to its Professional Package fixed rates, taking rates for one- to five-year terms below the 6% mark for owner occupiers with loan-to-value ratios (LVR) ≤80% making principal and interest (P&I) repayments. 

Some of the new rates are as follows:

Product Change New rate Comparison rate*
Professional Package 1-year fixed -0.25 5.94% p.a. 7.19% p.a.
Professional Package 2-year fixed -0.30 5.79% p.a. 7.04% p.a.
Professional Package 3-year fixed -0.20 5.79% p.a. 6.91% p.a.
Professional Package 5-year fixed -0.45 5.79% p.a. 6.69% p.a.

AMP Professional Package loans come with an annual fee of $349 but charge no application, valuation, settlement, or redraw fees.

AMP Bank has also cut up to 35 basis points on some of its fixed investor loans for both P&I and interest only (IO) repayments.

BoQ and ME Bank take fixed rates lower

It was only last week Bank of Queensland dropped a range of its fixed rate mortgages, including some of its low-deposit home loan rates, and now it's cutting again.

BoQ's new headline fixed rate for owner occupiers is now 5.59% p.a. (6.29% p.a. comparison rate*) for LVR <80% fixed for three years.

It's a discount rate for new-to-bank customers only and the offer is for a limited time. 

BoQ has taken up to 20 basis points off a wide range of its fixed rates for owner occupiers and investors on Friday.

The BoQ-owned ME Bank has also cut 20 basis points off its Member Package Flexible Fixed and Investment Member Package Fixed home loans.

Community First Bank cuts 20 bp from fixed rates

The member-owned Community First Bank is slicing 20 basis points across a range of its Accelerator Package Fixed and standard Fixed rates for one to three years for both owner occupiers and investors making P&I and IO repayments.

The best new rate is 5.84% p.a. for owner occupiers taking out Accelerator loans for two years (6.38% p.a. comparison rate*) or three years (6.36% p.a. comparison rate*).

Accelerator loans come with a $395 annual fee and no application, redraw, or annual fees for a linked credit card.

Community First Bank's online lender Easy Street is also offering the same owner occupier and investor rates, also dropped by 20 basis points.

Other rate movers

MyState Bank has slashed up to 55 basis points from a huge range of its residential and investor home loans, taking many of its residential fixed rates for LVR <80% loans under the 6% mark.

It's also made more modest cuts to its Basic Variable home loan, taking five basis points off its LVR ≤60% rate to 6.04% p.a. (6.07% p.a. comparison rate).

Horizon Bank has cut the rate on its fixed rate home loans for owner occupiers and investors by up to 10 basis points.

Its best new rate is an eye-catching 5.54% p.a. (6.31% p.a. comparison rate*) for owner occupiers with LVR ≤70% fixing for three years.

Summerland Bank has taken up to 15 basis points off its Standard and Investment Standard fixed rate home loans. 

Finally, Bank of China has also sliced 10 basis points from its Discount Plus variable home loan rates for borrowers with ≤80% LVR.

Its best new rate is now 6.08% p.a. (6.45% p.a. comparison rate*) for owner occupiers making P&I repayments.

Advertisement

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.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply 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.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 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

Image by Manny Moreno on Unsplash



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy