The Mac credit union has sliced a bold 90 basis points off its Standard Fixed Rate home loan to 5.69% (7.53% comparison rate*), fixed for two years.
It puts the south-western Sydney credit union among the lowest fixed rate home lenders on the market, particularly as other comparable rates generally have lock-in periods of five years.
The Mac loan also stands out for offering its deal for loans up to 95% loan-to-value (LVR) ratio with free redraw facilities and no ongoing fees.
It’s also dropped the rate on its two-year Standard Fixed investment loan by 70 basis points.
Here are the details of The Mac’s latest offerings below:
| Product name | LVR |
Change (basis points) |
New rate | Comparison rate* |
| Standard Fixed 2 years | ≤95% | -90 bp | 5.69% | 7.53%* |
| Investment Standard Fixed 2 years | ≤95% | -70 bp | 5.99% | 7.64%* |
Fixed rates continue to fall
Fixed rate loans are on the downward trend across the market although it seems borrowers are not taking the bait, preferring to sign up to variable loans in anticipation of forecast interest rate falls later this year.
Fixed rate loans hit their peak popularity in July 2021 when 46% of new home lending, by value, was at fixed rates.
It’s no surprise this was during the economic funk of the pandemic when interest rates were at historic lows, with many borrowers on variable rates also choosing to lock in to take advantage.
Many of those fixed rate loans have now expired with borrowers so far largely coping with higher variable rate repayments, but no doubt looking toward some reprieve.
The latest ABS data on new home lending shows just over 2% of new loans are now at fixed rates.
Bank First drops investor loan rates
Bank First has lowered rates on a range of its fixed and variable investor loans by up to 20 basis points this week.
Its Basic Home Loan Investor rate is now 6.34% (6.37% comparison rate*) for a principal and interest (P&I) loan with ≤60% LVR, down by 15 basis points.
Here are some of the Victorian bank’s new investor loan deals:
| Product name | LVR | Change (basis points) | New rate | Comparison rate* |
| Basic Home Loan Investor P&I | ≤60% | 15 bp | 6.35% p.a. | 6.37% p.a.* |
| Basic Home Loan Investor P&I | 60-80% | 20 bp | 6.44% p.a. | 6.47% p.a.* |
| Complete Home Loan Investor P&I | ≤60% | 15 bp | 6.44% p.a. | 6.47% p.a.* |
| Complete Home Loan Investor P&I | 60-80% | 20bp | 6.54% p.a. | 6.57% p.a* |
| Investment Introductory Premier Package | ≤80% | 20 bp | 6.51% p.a. | 7.20% p.a.* |
| Premier Package Home Loan Investment | ≤60% | 15 bp | 6.78% p.a. | 7.14% p.a.* |
| Premier Package Home Loan Investment | 60-80% | 20 bp | 6.98% p.a. | 7.34% p.a.* |
Reduce edges SMSF loans down
Reduce Home Loans sneaks into this week’s mortgage wrap-up after announcing some tweaks to its SMSF loan products late last Friday.
It’s nudged down the rates on its Capitalizer SMSF Metro New Purchase P&I loans by up to 10 basis points.
Here are all the details below:
| Product name | LVR | Change (basis points) | New rate | Comparison rate* |
| Capitalizer SMSF Metro New Purchase P&I | 65-70% | 10 bp | 6.99% p.a. | 7.10% p.a.* |
| Capitalizer SMSF Metro New Purchase P&I | 70-75% | 5 bp | 7.29% p.a. | 7.40% p.a.* |
| Capitalizer SMSF Metro New Purchase P&I | 75-80% | 10 bp | 7.29% p.a. | 7.40% p.a.* |
Reduce is also the only lender to lift mortgage rates this week - its Basic Investment Home Loan increased five basis point to 6.34% p.a. (6.37% p.a. comparison rate*) for ≤60-70% LVR loans.
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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.
| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.69% p.a. | 6.16% p.a. | $2,899 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Zac Gudakov on Unsplash
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