For even the most ostrich-esque, head-in-the-sand luddites, it was hard to escape the financial and economic news this week with Trump tariffs wreaking havoc on share markets and the broader outlook.
Then, a market bounce from announcing a 90-day moratorium on some tariffs.
The volatility has led to ANZ economists saying it's not out of the question to see a 50 basis point cash rate cut in May from the RBA.
NAB's team was firmer saying they've pencilled-in that outsized cut, and now see a cash rate of 2.60% by early 2026.
All from a few days of market volatility.
While continued cash rate cuts is obviously good news for variable mortgage holders, no doubt RBA governor Michele Bullock will be able to cut through the noise and steady the ship.
More often than not these days the RBA has been the calm, guiding hand, rather than governments beholden to an election cycle, getting caught up in spats and window-dressing policy rather than tackling the big issues.
And we wonder why there's a productivity problem.
Nevertheless, here are the most noteworthy home loan rate movements from the past week.
NAB slashes fixed rates as it reads the tea leaves
| Product | Movement | New Rate % p.a. (Comparison rate*) |
|---|---|---|
| Tailored Fixed 1 Year P&I 80% LVR | -0.55 | 5.54% p.a. (6.70% p.a.) |
| Tailored Fixed 2 Years P&I 80% LVR | -0.45 | 5.44% p.a. (6.57% p.a.) |
| Tailored Fixed 3 Years P&I 80% LVR | -0.45 | 5.39% p.a. (6.44% p.a.) |
| Tailored Fixed 4 Years P&I 80% LVR | -0.40 | 5.79% p.a. (6.48% p.a.) |
| Tailored Fixed 5 Years P&I 80% LVR | -0.45 | 5.79% p.a. (6.41% p.a.) |
| Inv Tailored Fixed 1 Year P&I 80% LVR | -0.50 | 5.69% p.a. (6.98% p.a.) |
| Inv Tailored Fixed 2 Years P&I 80% LVR | -0.40 | 5.59% p.a. (6.83% p.a.) |
| Inv Tailored Fixed 3 Years P&I 80% LVR | -0.40 | 5.59% p.a. (6.71% p.a.) |
| Inv Tailored Fixed 4 Years P&I 80% LVR | -0.40 | 5.99% p.a. (6.74% p.a.) |
| Inv Tailored Fixed 5 Year P&I 80% LVR | -0.45 | 5.99% p.a. (6.66% p.a.) |
A number of other loans for owner occupiers and investors, across both interest-only and P&I terms, and across different LVRs, were also cut by up to 55 basis points.
NAB was also one of the standout term deposit cutters this week, its economists' cash rate forecasts seemingly bearing a weight on the rate setting team.
As a colleague points out, the falling bond yields are what's driving the decreases as investors chase security amid volatility.
Suncorp home loan rate increases
Suncorp has increased a series of its variable 'Back to Basic' and 'Home Package Plus' home loan rates by a whopping 2 basis points.
| Product | Movement | New % Rate p.a. (Comparison rate*) |
|---|---|---|
| Back to Basics Better Together 80% P&I | +0.02 | 5.91% p.a. (5.92% p.a.) |
| Inv Back to Basics Better Together 80% P&I | +0.02 | 6.11% p.a. (6.12% p.a.) |
| Home Package Plus 80% P&I | +0.02 | 6.02% p.a. (6.37% p.a.) |
| Inv Home Package Plus 80% P&I | +0.02 | 6.21% p.a. (6.56% p.a.) |
These rates are 'Special Offers' meaning they could be withdrawn at any time. A variety of other products with differing LVRs and payment terms were also increased by 2 basis points.
In early April, parent ANZ had a capital add-on slapped on it by APRA.
What this means is that to account for heightened risk, APRA saw fit to increase the bank's capital requirement from $750 million to $1 billion.
This follows a $500 million add-on in 2024, and is to ensure ANZ has enough cash on hand to account for any downturns; different home loan profiles (such as for investors) require different capital allotments.
"APRA has had long-standing concerns over ANZ's non-financial risk management practices and risk culture. These include weaknesses in ANZ's operational risk and compliance management and a reactive risk culture," APRA's statement read.
Such risk-adjustment could explain the reason for Suncorp's rate increases.
Police Bank takes sting out of 2-year fixed rates
Police Bank has made hefty 50 basis point cuts to its series of home loan rates fixed for 2-years paying principal & interest (P&I).
| Product | Movement | New Rate % p.a. (Comparison rate*) |
|---|---|---|
| Police Value 90% LVR | -0.50 | 5.49% p.a. (6.01% p.a.) |
| Inv Police Value 80% LVR | -0.50 | 5.64% p.a. (6.12% p.a.) |
| Goldrate 80% LVR | -0.50 | 5.49% p.a. (6.05% p.a.) |
| Inv Goldrate 80% LVR | -0.50 | 5.69% p.a. (6.17% p.a.) |
A few other products with differing LVRs were also cut, with slight discounts on offer for bigger deposit sizes.
Police Bank is one of 11 providers to offer a cashback deal, in this case up to $4,000 depending on loan size.
BankVic doubles up for boys (and girls) in blue
| Product | Movement | New Rate % p.a. (Comparison rate*) |
|---|---|---|
| Investment Offset Police | -0.21 | 6.03% p.a. (6.08% p.a.) |
| Investment Offset | -0.21 | 6.09% p.a. (6.14% p.a.) |
| Investment Variable IO | -0.21 | 6.09% p.a. (6.11% p.a.) |
| Investment Variable P&I | -0.20 | 6.05% p.a. (6.10% p.a.) |
These loans have a maximum LVR of 90%.
To thank the men and women who serve on the frontline, there is a 6 basis point discount on offer for those who invest in property.
BankVic also offers a cashback deal - for police, up to $4,000 depending on loan size and LVR.
Other movers
- P&N Bank, and subsidiary BCU, cut 1- and 3-year rates by up to 85 basis points.
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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 | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.79% p.a. | 5.83% p.a. | $2,931 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | |||||||||||
5.74% p.a. | 5.65% p.a. | $2,915 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | |||||||||||
5.84% p.a. | 6.08% p.a. | $2,947 | Principal & Interest | Variable | $250 | $250 | 60% |
| Promoted | Disclosure |
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