Bendigo Bank is the latest bank to offer a home loan under 2%.
The fifth largest retail bank cut rates to investment and residential home loans by 20 basis points each.
Its 'Complete' home loan, fixed for two years paying principal & interest (P&I) is now 1.99% p.a. with a 2.82% p.a. comparison rate*.
Dennis Teale, Head of Retail Banking at Bendigo and Adelaide Bank, said the rate change is "in response to an easing in funding costs, enabling us to offer a sharper, more competitive rate for new loans."
Other noteworthy changes were:
- Investor Complete Home Loan Fixed IO 2 yrs: Down to 2.69% p.a. (3.25% p.a. comparison rate*)
- Investor Complete Home Loan Fixed P&I 2 yrs: Down to 2.49% p.a. (3.11% p.a. comparison rate*)
Other home loan rate cuts
Neobank 86 400 slashed interest rates by up to 25 basis points on its investment and owner-occupied home loans.
Some noteworthy changes were:
- Investment Neat Home Loan IO ≤60%: 25 basis point cut to 2.59% p.a. (2.48% p.a. comparison rate*)
- Own Home Loan Fixed P&I 3 yrs: 14 basis point cut to 1.85% p.a. (2.47% p.a. comparison rate*)
Additionally, the neobank introduced a new 85% Loan to Value Ratio (LVR) tier for owner occupiers making principal and interest repayments, and waived Lenders Mortgage Insurance (LMI).
AMP Bank also cut rates on its Professional Package Variable by up to 20 basis points.
Some noteworthy changes were:
- Professional Package Owner Occupied P&I ≤60% 100-499k: 2.29% p.a. (2.71% p.a. comparison rate*)
- Professional Package Owner Occupied P&I 60-80% 500k+: 2.34% p.a. (2.76% p.a. comparison rate*)
CommBank's rates creep higher
Commonwealth Bank increased its fixed home loan rates for the third time this year. Despite this hike, its rates remain at 'historic lows.'
Some noteworthy changes were:
- Residential Fixed P&I 2 Years: 2.14% p.a. (4.26% p.a. comparison rate*)
- Wealth Package Residential Fixed P&I 2 Years ($150k+): 1.99% p.a. (3.94% p.a. comparison rate*)
Recent months have seen banks continually increase interest rates, particularly longer-term fixed rates.
This can be attributed to the ending of the Reserve Bank's Term Funding Facility (TTF), among other reasons, which provided cheap funding to banks.
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