Bank of Queensland's bold move to cut up to 15 basis points off some of its variable owner-occupier and investment home loan rates was the biggest move on the mortgage market this week.

It seems many lenders are taking stock after the flurry of rates movements in the wake of the Reserve Bank's first drop to the cash rate in four years in February.

BoQ's new investor rate, starting at 5.99% p.a. (6.14% p.a. comparison rate*) for loan-to-value ratios (LVRs) of 80% and less, are the lowest variable investor rates among the top 10 home lenders for those making principal and interest (P&I) repayments.

Here's a look at BoQ's new special offer rates, starting with owner occupiers (OO):

Product Change (%) New rate Comparison rate*
Economy Variable OO P&I LVR <70% -0.05 5.88% 6.03%
Economy Variable OO P&I LVR 70-80% -0.10 5.88% 6.03%
Economy Variable OO P&I LVR >80% -0.05 6.09% 6.24%
Clear Path Variable P&I LVR ≤80% -0.15 5.99% 6.11%
Clear Path Variable P&I LVR 80-90% -0.15 6.24% 6.36%
Investment Economy P&I LVR <70% -0.10 5.99% 6.14%
Investment Economy P&I LVR 70-80% -0.15 5.99% 6.14%
Investment Economy IO LVR ≤70% -0.05 6.14% 6.20%
Investment Economy IO LVR 70-80% -0.10 6.14% 6.20%

BoQ's Clear Path loans come with a mortgage offset account, unlimited free redraws, and no application fees.

G&C Mutual/Unity slash 45 bp

The merged customer-owned banks have gone big on cuts to their Advantage home loans for both owner occupiers and investors, plunging rates by 45 basis points.

Here are the new rates for borrowers with LVRs of up to 95%:

Product Change (%) New rate Comparison rate*
Advantage OO P&I -0.45 6.04% 6.09%
Advantage OO P&I Offset -0.45 6.14% 6.19%
Advantage OO IO -0.45 6.04% 6.07%
Advantage OO IO Offset -0.45 6.14% 6.17%
Investment Advantage P&I -0.45 6.34% 6.39%
Investment Advantage IO -0.45 6.34% 6.38%
Investment Advantage P&I Offset -0.45 6.44% 6.49%
Investment Advantage IO Offset -0.45 6.44% 6.48%

The banks' Advantage home loans come with no establishment or monthly fees and offer unlimited redraws.

Military Bank retreats on rates

Australian Military Bank has also cut up to 44 basis points on a range of its home loan products this week.

Its new lowest rate is 5.89% p.a. (5.92% p.a. comparison rate*) on its basic RateSaver variable home loan for LVRs of 60% or less - a 29 basis point drop.

Here are the new RateSaver rates for owner occupiers:

Product Change (%) New rate Comparison rate*
RateSaver LVR <60% -0.29 5.89% 5.92%
RateSaver LVR <70% -0.19 5.99% 6.02%
RateSaver <80% -0.34 6.09% 6.12%
RateSaver <90% -0.14 6.29% 6.32%
RateSaver 90-95% -0.44 6.54% 6.57%

Military Bank's Value Home Loans with offset accounts have also seen rates trimmed, as follows:

Product Change (%) New rate Comparison rate*
Value <60% -0.44 6.29% 6.32%
Value <70% -0.34 6.39% 6.42%
Value <80% -0.24 6.49% 6.52%
Value <90% -0.04 6.69% 6.72%
Value <95% -0.15 6.94% 6.98%

Both RateSaver and Value investment loans also had their rates cut this week.

Investor rates at the bank are 25 basis points higher than the corresponding owner occupier rates.

The new rates on Value home loans are available to investors making P&I repayments on loans with LVRs of up to 80%.

Summerland cuts 1-year fixed & eco loan rates

Finally, the northern New South Wales-based Summerland Bank is offering 5.74% p.a. (6.64% p.a. comparison rate*) on a standard one year fixed rate home loan, a 15 basis point cut, for owner occupiers with ≤80% LVR.

The rate will also apply under a special offer one-year fixed rate deal for owner occupiers with LVRs of 60% to 80% – down five basis points.

For those with LVRs of 60% or less, that rate drops to 5.69% p.a. (6.63% p.a. comparison rate*).

Summerland has also shaved another five basis points off its variable rate Eco Home Loan for people buying or upgrading an eco-friendly property.

The new special offer rate of 5.59% p.a. (5.64% p.a. comparison rate*) is for owner occupiers with LVRs of up to 60%.

To be eligible for the Eco Loan, the secured property must have five sustainable features from a designated list or be installing any remaining features.

What will happen to the cash rate next week?

Those keeping an eye on the home loan market may well be waiting on the outcome of next week's RBA board meeting, to be held over Monday 31 March and Tuesday 1 April.

It will be the first meeting of the newly formed Monetary Policy Board.

Although, neither the market nor commentators are expecting an April rate cut.

Markets are pricing an 8% chance of a 25 basis point rate cut, which would bring the cash rate to 3.85%.

Meanwhile, many economists say the odds have firmed for a May rate cut after this week's CPI data showed inflation slowed to 2.4% in February.

The RBA's preferred measure, trimmed mean inflation, also slowed to 2.7% - below the RBA's forecast.

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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.

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
5.79% p.a.
5.83% p.a.
$2,931
Principal & Interest
Variable
$0
$530
90%
  • 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
5.74% p.a.
5.65% p.a.
$2,915
Principal & Interest
Variable
$0
$0
80%
100% owned by Commbank
  • 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
5.84% p.a.
6.08% p.a.
$2,947
Principal & Interest
Variable
$250
$250
60%
100% offset
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 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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