What a week it’s been in interest rate land, folks.

While there’s been no cash rate changes (those are reserved for the first week of each month, bar January), there has been plenty of news concerning the Reserve Bank of Australia (RBA).

Most notably, Governor Michele Bullock warned that ‘global shocks’ such as the Israel-Palestine conflict could buoy inflation, thereby forcing rates to be held higher for longer.

Meanwhile, the unemployment rate defied expectations, dropping to 3.6% in September.

The next inflation read will come next week on the release of the Australian Bureau of Statistics’ (ABS) quarterly Consumer Price Index (CPI).

The results will likely be a major talking point at the RBA board’s November meeting, where NAB expects the cash rate will be hiked and the rest of the big four banks forecast another hold.

With all that considered, those shopping around for a new home loan deal might be interested to know that this week saw multiple lenders slash their variable home loan interest rates.

Home loan lenders slash variable interest rates by as much 35 basis points

In the market for a variable rate home loan? It might be your lucky day (nay, week), with a handful of lenders each cutting the rates on offer to new borrowers.

Taking out the crown of the biggest mover was Unity Bank, which dropped some of its variable rates by as much as 35 basis points. Highlights include:

  • Advantage Home Loan principal and interest (P&I) ≤60% loan to value ratio (LVR): 35 basis point decrease to 5.99% per annum (p.a.)(6.06% p.a. comparison rate*)
  • Investment Advantage Home Loan P&I ≤60% LVR: 30 basis point decrease to 6.19% p.a. (6.26% p.a. comparison rate*)
  • Advantage Home Loan P&I 80-90% LVR: 30 basis point decrease to 6.79% p.a. (6.86% p.a. comparison rate*)
  • Investment Advantage Home Loan P&I 80-90% LVR: 30 basis point decrease to 7.09% p.a. (7.16% p.a. comparison rate*)

Both Greater Bank and Newcastle Permanent also hit the trigger once more, cutting variable interest rates by up to 11 basis points.

The recently-merged pair have regularly featured on Savings.com.au's weekly home loan rate wrap in recent times.

This week, Greater Bank made changes such as:

  • Great Rate Discount Variable $150k+ ≤80% LVR: 5 basis point decrease to 5.74% p.a. (5.75% p.a. comparison rate*)
  • Ultimate Discount Investment Variable P&I $150k+ ≤80% LVR: 11 basis point decrease to 6.08% p.a. (6.45% p.a. comparison rate*)

Simultaneously, Newcastle Permanent made cuts like:

  • Premium Plus Package Variable P&I $150k+ ≤80% Special Offer: 11 basis point decrease to 5.88% p.a. (6.22% p.a. comparison rate*)
  • Premium Plus Package Investment Variable P&I $150k+ ≤80% Special Offer: 11 basis point decrease to 6.08% p.a. (6.42% p.a. comparison rate*)

Suncorp Bank hikes variable rates by up to 5 basis points

Suncorp Bank, on the other hand, bumped the special offer it provides for those signing on to a variable interest rate home loan this week.

Its new special offers include:

  • Back to Basics Better Together P&I 60%-70% LVR Special Offer: 5 basis point increase to 5.89% p.a. (5.90% p.a. comparison rate*)
  • Back to Basics Better Together P&I 70%-80% LVR Special Offer: 5 basis point increase to 5.89% p.a. (5.90% comparison rate*)
  • Home Package Plus P&I 60%-70% LVR Special Offer: 5 basis point increase to 5.99% p.a. (6.35% p.a. comparison rate*)
  • Home Package Plus P&I 70%-80% LVR Special Offer: 5 basis point increase to 6.00% p.a. (6.36% p.a. comparison rate*)

IMB shakes up fixed rates by up to 20 basis points

Finally, IMB has made notable changes to its fixed rate home loan offerings, with highlights including:

  • Investment Fixed P&I ≤90 LVR 1 year: 15 basis point increase to 6.39% p.a. (6.70% p.a. comparison rate*)
  • Investment Fixed P&I ≤90 LVR 3 years: 20 basis point decrease to 5.99% p.a. (6.54% p.a. comparison rate*)
  • Residential Fixed P&I ≤80% LVR 2 years: 20 basis point decrease to 5.79% p.a. (6.10% p.a. comparison rate*)
  • Residential Fixed P&I ≤80% LVR 3 years: 20 basis point decrease to 5.79% p.a. (6.08% p.a. comparison rate*)

Image by Sieuwert Otterloo on Unsplash.



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