In fact, one of Australia’s most recognisable banks offered homebuyers and refinancers an early present, slashing its offered fixed interest rates by as much as 55 basis points.
That’s despite no major news regarding the Reserve Bank of Australia’s next cash rate decision hitting headlines, however fixed-rate home loans are also highly contingent on swap rates and other wholesale market activity.
The central bank released the minutes for the December monetary policy decision this week, suggesting once more that another hike might be on the cards when it meets again in February.
By that time, the market will have digested the upcoming quarterly inflation figures – a key window into whether the RBA’s 13 previous hikes are working.
But for now, Aussies can sit back, relax, enjoy celebrating with family, and, of course, keep their finger on the pulse of the home loan interest rate market.
Let’s dive into this week’s movers and shakers; keep in mind these rate changes are for new customers only.
Bendigo Bank slashes fixed rates by up to 55 basis points
First up, community banking giant Bendigo Bank has cut rates on many of its home loan products.
It comes just three weeks after the bank dropped certain variable rates by as much as 135 basis points, and five weeks after it lifted variable rates on the back of the RBA’s November hike.
Changes made to Bendigo Bank’s fixed rate home loans for owner-occupiers this week include:
- Complete Home Loan, one year fixed, principal and interest (P&I): 25 basis point decrease to 6.29% p.a. (6.47% p.a. comparison rate*)
- Complete Home Loan, two year fixed, P&I: 40 basis point decrease to 5.99% p.a. (6.41% p.a. comparison rate*)
- Complete Home Loan, three year fixed, P&I: 35 basis point decrease to 6.04% p.a. (6.41% p.a. comparison rate*)
- Complete Home Loan, four year fixed, P&I: 45 basis point decrease to 6.04% p.a. (6.39% p.a. comparison rate*)
- Complete Home Loan, five year fixed, P&I: 55 basis point decrease to 6.04% p.a. (6.38% p.a. comparison rate*)
The bank also slashed its interest rates for owner-occupiers making interest only (IO) repayments.
Those signing on for an interest-only Complete Home Loan or an Express Fixed Home Loan with a fixed rate period of three to five years might now be able to receive a rate of 6.54% p.a. (down between 35 and 55 basis points week-on-week)(comparison rates* vary from 6.35% p.a. to 6.64% p.a.)
That’s slightly higher than the lowest four- and five-year fixed rates on the market right now (6.30% p.a. and 6.35% p.a. respectively, as per InfoChoice data).
Meanwhile, investors could make the most of these newly dropped fixed rates:
- Investment Complete Home Loan, one year fixed, principal and interest (P&I): 20 basis point decrease to 6.64% p.a. (6.77% p.a. comparison rate*)
- Investment Complete Home Loan, two year fixed, P&I: 35 basis point decrease to 6.34% p.a. (6.72% p.a. comparison rate*)
- Investment Complete Home Loan, three year fixed, P&I: 30 basis point decrease to 6.39% p.a. (6.72% p.a. comparison rate*)
- Investment Complete Home Loan, four year fixed, P&I: 40 basis point decrease to 6.39% p.a. (6.71% p.a. comparison rate*)
- Investment Complete Home Loan, five year fixed, P&I: 50 basis point decrease to 6.39% p.a. (6.69% p.a. comparison rate*)
MyState also cuts fixed home loan interest rates
Joining in on the fixed-rate-slashing-action was MyState, which cut rates offered on its two- and three-year fixed terms by up to 40 basis points.
Owner-occupiers looking for a product with a loan-to-value ratio (LVR) of up to 80% might be interested in these changes:
- Residential, two year fixed, 70%-80% LVR: 40 basis point decrease to 5.99% p.a. (7.97% p.a. comparison rate*)
- Residential, three year fixed, 70%-80% LVR: 35 basis point decrease to 6.04% p.a. (7.77% p.a. comparison rate*)
While investors might find their attention is caught by these new rates:
- Investment, two year fixed, ≤80% LVR: 25 basis point decrease to 6.39% p.a. (8.06% p.a. comparison rate*)
- Investment, three year fixed, ≤80% LVR: 15 basis point decrease to 6.39% p.a. (7.87% p.a. comparison rate*)
Auswide Bank hikes variable rates by up to 15 basis points
Finally, Auswide Bank broke step this week, lifting many variable home loan rates.
Those eyeing off the bank might feel the impact of these changes:
- Basic Home Loan, P&I, ≤80% LVR: 10 basis point increase to 5.99% p.a. (6.01% p.a. comparison rate*)
- Basic Investment Loan, P&I, 60%-80% LVR: 10 basis point increase to 6.44% p.a. (6.46% p.a. comparison rate*)
- Freedom Package Variable, P&I, ≤80% LVR: 15 basis point increase to 6.09% p.a. (6.43% p.a. comparison rate*)
- Freedom Package Investment Variable, P&I, 60%-80% LVR: 15 basis point increase to 6.54% p.a. (6.88% p.a. comparison rate*)
Advertisement
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 R ARCHITECTURE on Unsplash.
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Rachel Horan
Harrison Astbury
