Another week, another big four bank reducing fixed interest home loan rates. This time it was ANZ jumping in on the action, cutting rates on certain fixed interest products by up to 30 basis points.
For those keeping a close eye on the quartet, Westpac cut some of its fixed home loan interest rates and NAB slashed fixed and variable rates by as much as 96 basis points last week.
CommBank, on the other hand, hasn’t made a home loan interest rate move for new customers in the past six weeks.
The move came as Julian Finch, founder and principal broker of Finch Financial Services, told The Savings Tip Jar podcast that fixed rates are typically more expensive than variable rates at the moment.
“With the outlook looking like rates are either going to stabilise or potentially fall, fixing your rate now might not be the best option,” he said.
So, without further ado, let’s dive into the banks and lenders shaking up their home loan interest rates this week.
It’s worth noting that the following home loan rate changes are on offer to new customers. Existing customers mightn’t be impacted.
ANZ drops fixed interest rates by up to 30 basis points
The smallest of the big four was the biggest Aussie bank to make interest rate moves this week, slashing the fixed rates offered on some of its home loan products by as much as 30 basis points.
Those hoping to become owner occupiers could consider these newly slashed fixed rates:
- Residential Fixed 2 years ≤80% loan-to-value ratio (LVR): 30 basis point decrease to 6.24% p.a. (6.84% p.a. comparison rate*)
- Residential Fixed 1 year 80%-90% LVR: 20 basis point decrease to 6.39% p.a. (7.11% p.a. comparison rate*)
- Residential Fixed 3 years ≤80% LVR: 10 basis point decrease to 6.29% p.a. (6.79% p.a. comparison rate *)
- Residential Fixed interest only (IO) 2 years 80%-90% LVR: 10 basis point decrease to 6.59% p.a. (7.07% p.a. comparison rate*)
Meanwhile, property investors might want to check out these recently reduced fixed rates:
- Investment Fixed 3 years ≤80% LVR: 5 basis point decrease to 6.39% p.a. (7.24% p.a. comparison rate*)
- Investment Fixed 1 years 80%-90% LVR: 15 basis point decrease to 6.59% p.a. (7.66% p.a. comparison rate*)
- Investment Fixed 2 years 80%-90% LVR: 25 basis point decrease to 6.44% p.a. (7.51% p.a. comparison rate*)
- Investment Fixed IO 2 years 80%-90% LVR: 25 basis point decrease to 6.49% p.a. (7.53% p.a. comparison rate*)
See also: What is a comparison rate?
G&C Mutual Bank shakes fixed rates up (again) by as much as 79 basis points
It’s only been a fortnight or so, but G&C Mutual Bank is making home loan interest rate moves again.
The customer-owned bank was among friends when it bolstered certain home loan rates by 30 basis points earlier this month.
This week, it made numerous cuts, as well as some hikes, including:
- Residential Fixed 5 years ≤95% LVR: 79 basis point decrease to 6.15% p.a. (6.21% p.a. comparison rate*)
- Residential Fixed 1 year ≤95% LVR: 29 basis point increase to 5.89% p.a. (5.95% p.a. comparison rate*)
- Investment Fixed 4 years ≤90% LVR: 64 basis point decrease to 6.30% p.a. (6.36% p.a. comparison rate*)
- Investment Fixed IO 3 years ≤90% LVR: 49 basis point decrease to 6.45% p.a. (6.50% p.a. comparison rate*)
HSBC lifts home loan rates by up to 70 basis points, offers discounts
HSBC has joined in on the interest rate action, upping the rates on many of its fixed and variable home loan products. Though, it had dropped the rates on some products as part of promotional offers.
For instance, eligible home buyers borrowing more than $50,000 through the lender’s Home Loan Package Home Smart <80% LVR product could realise a lower variable rate of 5.94% p.a. (6.31% p.a. comparison rate*), marking a 10 basis point drop.
However, borrowers not taking advantage of promotional offers might notice these rates have been hiked:
- Residential Fixed 1 year <80% LVR: 50 basis point increase to 6.59% p.a. (7.25% p.a. comparison rate*)
- Home Loan Package Owner Occupier Fixed 3 years 80%-90% LVR: 20 basis point increase to 6.29% p.a. (6.62% p.a. comparison rate*)
- Residential Fixed IO 1 year <80% LVR: 70 basis point increase to 6.99% p.a. (7.29% p.a. comparison rate*)
- Investment Fixed IO 1 year <80% LVR: 70 basis point increase to 6.99% p.a. (7.47% 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.
| 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.
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