The big banks sat this week out when it came to making home loan interest rate moves. But that doesn’t mean nothing exciting happened.

In fact, those hunting for a new home loan might jump for joy on seeing rate cuts as large as 35 basis points on some mortgage products.

It comes as the Reserve Bank of Australia (RBA) decided to keep the cash rate steady at 4.10% for the third consecutive month on Tuesday. Many experts are forecasting its next move to be a cut, perhaps sometime next year.

Many of this week’s home loan rate movers and shakers were mutual banks, meaning they work for their customers not shareholders.

So, what changes have they slapped on the table in recent days?

Before we dive in, its important to note the following home loan rate changes are on offer to new customers and some are special offers. Existing customers will likely be unaffected or face different rate changes entirely.

Newcastle Permanent champions some of the biggest cuts

First cab off the rank is Newcastle Permanent, which this week slashed the interest rates on some of its products by as much as 35 basis points.

The mutual bank made changes to the rates on offer for both fixed and variable interest home loans.

Take a look at some of the highlights for owner-occupiers:

  • Premium Plus Package Residential Fixed Principal and Interest (P&I) 3 years, ≤80% loan-to-value ratio (LVR), Special Offer: 35 basis point decrease to 5.94% per annum (p.a.)(7.41% p.a. comparison rate*)
  • Residential Fixed P&I 2 years, ≤80% LVR, Special Offer: 35 basis point decrease to 6.04% p.a. (7.83% p.a. comparison rate*)
  • Premium Plus Package Variable P&I, ≤80% LVR, $150k+, Special Offer: 15 basis point decrease to 5.99% p.a. (6.33% p.a. comparison rate*)
  • Real Deal P&I, ≤95% LVR%, 150k+, Special Offer: 10 basis point increase to 6.49% p.a. (6.53% p.a. comparison rate*)

Meanwhile, investors could take advantage of these changes:

  • Investment Fixed P&I 3 years, ≤80% LVR, Special Offer: 35 basis point decrease to 6.14% p.a. (7.90% p.a. comparison rate*)
  • Premium Plus Package Investment Fixed P&I 2 years, ≤80% LVR, Special Offer: 35 basis point decrease to 6.04% p.a. (7.83% p.a. comparison rate*)
  • Investment Fixed Interest Only (IO) 2 years, ≤80% LVR, Special Offer: 35 basis point decrease to 6.24% p.a. (8.14% p.a. comparison rate*)
  • Premium Plus Package Investment Variable P&I, ≤80% LVR, 150k+, Special Offer: 5 basis point decrease to 6.19% p.a. (6.53% p.a. comparison rate*)

Greater Bank doing greater things for new borrowers

In another win for Hunter-based banks, customer-owned Greater Bank took an axe to its home loan interest rates.

Those keeping track will remember Great Bank merged with Newcastle Permanent earlier this year and continues to operate under its own brand, but the products now seem closely aligned.

Greater Bank slashed the rates on many of its fixed and variable rate owner occupier and investment home loans by as much as 30 basis points, with talking points including:

  • Ultimate Discount Variable P&I, ≤80% LVR, $150k+: 21 basis point decrease to 5.99% p.a. (6.36% p.a. comparison rate*)
  • Ultimate Discount Investment Variable P&I, ≤80% LVR, 150k+: 30 basis point decrease to 6.19% p.a. (6.56% p.a. comparison rate*)
  • Great Rate Discount Variable, ≤80% LVR, $150k+: 5 basis point decrease to 5.84% p.a. (5.85% p.a. comparison rate*)
  • Great Rate Fixed 3 years, ≤95% LVR, $150k+: 15 basis point decrease to 5.94% p.a. (7.13% p.a. comparison rate*)

G&C Mutual Bank hikes interest rates by up to 30 basis points

On the other end of spectrum, Sydney-based customer owned bank G&C Mutual Bank added to the interest rates of many of its fixed and variable home loan offerings.

Those in the market for their first home might find their attention caught by this change:

  • First Home Buyer Loan, ≤95% LVR, Special Offer: 30 basis point increase to 5.79% p.a. (5.82% p.a. comparison rate*)

Other changes include:

  • Momentum Home Loan 80-95% LVR, Special Offer: 30 basis point increase to 5.99% p.a. (6.02% p.a. comparison rate*)
  • Momentum Investor Loan 60-80% LVR, Special Offer: 30 basis point increase to 6.29% p.a. (6.32% p.a. comparison rate*)
  • Residential Fixed P&I 2 years, ≤95% LVR: 5 basis point increase to 5.99% p.a. (6.05% p.a. comparison rate*)
  • Momentum Home Loan ≤60%, Special Offer: 30 basis point increase to 5.79% p.a. (5.82% p.a. comparison rate*)

Auswide Bank shakes rates up by as much as 20 basis points

The final noteworthy interest rate changes this week came from challenger bank Auswide.

It made quite a few changes to the rates on many of its fixed and variable interest home loan products, including these:

  • Freedom Package Fixed P&I 3 years, 60-70% LVR: 20 basis point increase to 6.39% p.a. (6.83% p.a. comparison rate*)
  • Freedom Package Variable P&I, 70-80% LVR: 10 basis point decrease to 6.09% p.a. (6.43% p.a. comparison rate*)
  • Freedom Package Investment Fixed P&I 2 years, ≤60% LVR: 20 basis point increase to 6.49% p.a. (7.06% p.a. comparison rate*)
  • Basic Investment Loan P&I 70-80% LVR: 10 basis point decrease to 6.34% p.a. (6.36% p.a. comparison rate*)

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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
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 Ronnie George on Unsplash



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