NAB, Westpac, and Bendigo Bank all joined in on home loan rate changing action this week, despite the cash rate remaining frozen.

The Reserve Bank of Australia (RBA) has held the cash rate steady at 4.10% for three consecutive months now.

Many experts believe we’ve hit the interest rate ceiling, tipping the next move from the central bank to be a cut.

Here are some of the major changes Aussies in the market for a new home loan will want to know about.

But before we get into it, it’s important to note these changes will impact new customers only. Existing customers might find their home loan interest rate is unchanged or impacted by different changes.

NAB drops home loan interest rates by 96 basis points

NAB led the pack this week, dropping the interest rates on some of its fixed and variable products by close to a whole percentage point.

Take a look at some of the newly lowered rates available to investors or owner occupiers:

  • Investor Base Variable Rate Principal and Interest (P&I) ≤90% loan-to-value ratio (LVR): 96 basis point decrease to 7.01% per annum (p.a.)(7.05% p.a. comparison rate*)
  • Base Variable Rate Interest Only (IO) ≤95% LVR: 33 basis point decrease to 7.69% p.a. (7.06% p.a. comparison rate*)
  • Tailored Fixed P&I 2 years ≤60% LVR and 60-70% LVR: 35 basis point decrease to 6.19% p.a. (7.17% p.a. comparison rate*)
  • Tailored Fixed P&I 2 years 70-80% LVR and 80-90% LVR: 35 basis point decrease to 6.24% p.a. (7.34% p.a. comparison rate)

See also: What is a comparison rate?

Westpac shifts fixed rates by up to 25 basis points

Westpac wasn’t about to let its big four bank peer get all the glory. It varied two-year fixed rates on many of its investment home loan products.

Those eyeing a Westpac investment home loan might be interested to learn of these drops:

  • Premier Advantage Investment Fixed IO 2 years 70-80% LVR: 25 basis point decrease to 6.44% p.a. (8.07% p.a. comparison rate*)
  • Investment Fixed IO 2 years ≤70% LVR: 25 basis point decrease to 6.64% p.a. (8.92% p.a. comparison rate*)
  • Premier Advantage Investment Fixed P&I 2 years 70-80% LVR: 20 basis point decrease to 6.39% p.a. (7.86% p.a. comparison rate*)
  • Investment Fixed P&I 2 years 80-95% LVR: 20 basis point decrease to 6.59% p.a. (8.71% p.a. comparison rate*)

Bendigo Bank slashes home loan rates

Bendigo Bank cut many of its variable home loan interest rates by as much as 20 basis points.

Take a look at some of the highlights for property investors and owner occupiers:

  • Investment Complete Home Loan Variable P&I <60% LVR: 20 basis point decrease to 5.99% p.a. (6.21% p.a. comparison rate*)
  • Complete Home Loan Variable P&I <60% LVR: 15 basis point decrease to 5.89% p.a. (6.11% p.a. comparison rate*)
  • Investment Complete Home Loan Variable P&I 80-90% LVR: 20 basis point decrease to 7.54% p.a. (7.76% p.a. comparison rate*)
  • Complete Home Loan Variable P&I 80-90% LVR: 15 basis point decrease to 7.24% p.a. (7.46% p.a. comparison rate*)

AMP Bank shifts variable and fixed rates by up to 50 basis points

The final interest rate movements mentioned here this week came from AMP Bank. It shook things up for many of its home loan products this week, making rate moves as large as 50 basis points.

Take a look at some of the highlights:

  • Professional Package Residential Fixed P&I 1 year ≤80% LVR: 40 basis point decrease to 6.49% p.a. (6.86% p.a. comparison rate*)
  • Basic Variable Loan P&I 80-90% LVR: 50 basis point increase to 7.39% p.a. (7.44% p.a. comparison rate*)
  • Basic Fixed P&I 3 years ≤90% LVR: 50 basis point increase to 7.24% p.a. (7.40% p.a. comparison rate*)
  • Essential Home Loan 60-80% LVR $750k+: 10 basis point increase to 6.09% p.a. (6.12% 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.
6.06% 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
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 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 Ярослав Алексеенко on Unsplash



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