Fixed rate home loans have been heading south for some months in anticipation that the RBA cash rate will eventually go the same way.

Not many expected it to be this month but the August CPI inflation figure of 2.7%, released the day after the RBA decision, showed the economic landscape is looking more amenable to an eventual rate cut.

In her post-decision media conference on Tuesday, RBA governor Michele Bullock indicated she wasn't all that interested in monthly inflation figures affected by temporary cost-of-living relief measures.

See also: RBA holds cash rate in September

She also took the opportunity to reiterate there would be no cut to the cash rate "in the near term".

So, we're back to that.

That didn't stop a handful of smaller lenders following the market in pushing their fixed home loan rates lower this week - one by up to 65 basis points.

Let's check the latest market movements.

Teachers mark down variable rates

The Teachers Mutual Bank group is the only institution to lower some of its variable rates this week.

The group has four divisions including UniBank, Firefighters Mutual, and Health Professionals Bank whose rates move in unison.

The group has shaved five basis points off some of its variable rates for its Your Way Basic and Your Way Plus home loans.

Here's a selection of the new rates:

Product Change (%) New rate Comparison rate*
Your Way Basic Home Loan P&I ≤80% LVR -0.05 6.09% p.a. 6.15% p.a.
Your Way Basic Home Loan P&I >80% LVR -0.05 6.74% p.a. 6.81% p.a.
Your Way Plus P&I 60-80% LVR -0.05 6.24% p.a. 6.54% p.a.
Your Way Plus P&I 80-90% LVR -0.05 6.69% p.a. 6.98% p.a.
Your Way Plus P&I 90-95% LVR -0.05 6.94% p.a. 7.23% p.a.

There were much larger cuts to Your Way and Your Way Plus fixed rates, up to 25 basis points for both owner occupier and investor loans. 

The best new fixed rate for a Your Way owner occupier loan is 6.09% p.a. (6.15% p.a. comparison rate*) for principal and interest (P&I) payments fixed for either three years (a 15-basis point drop) or four years (25 basis points lower). 

Regional Australia Bank goes lower

The bank serving country New South Wales first made big cuts to its fixed home loan rates in early August but has again trimmed up to 25 basis point on many of its owner occupier and investor fixed rates.

Owner occupiers with a loan-to-value ratio (LVR) of between 70-80% paying principal and interest (P&I) can sign up to a two-year fixed rate of 5.69% p.a. (6.02% p.a. comparison rate*).

Here's a selection of some of the new rates for owner occupiers:

Product Change (%) New rate Comparison rate*
Fixed P&I LVR 70-80% 1 year -0.11 6.07% p.a. 6.10% p.a.
Fixed P&I LVR 70-80% 2 years -0.21 5.69% p.a. 6.02% p.a.
Fixed P&I LVR 70-80% 3 years -0.21 5.57% p.a. 5.95% p.a.
Fixed P&I LVR 70-80% 4 years -0.20 5.67% p.a. 5.95% p.a.
Fixed P&I LVR 70-80% 5 years -0.19 5.77% p.a. 5.95% p.a.

Rates are lower for lower LVR loans and jump for LVRs greater than 80%.

Regional Australia Bank has also dropped rates for owner occupiers and investors making interest only (IO) repayments on fixed loans for up to five years.

Newcastle Permanent cuts up to 30 bp

Newcastle Permanent had also made modest cuts to its fixed rate loans in early August but has come back for a second dig, taking bigger slices off its rates this time around.

Its lowest new rate is 5.59% p.a., a special offer deal for owner occupiers making P&I payments and fixing for two years (7.93% p.a. comparison rate*) or three years (7.67% p.a. comparison rate*).

There are also special offer deals going for owner occupiers and investors opting to make interest only repayments.

Newcastle Permanent is still offering a $3,000 cashback deal to new or refinancing borrowers applying online.

See also: Home loan offers and deals September 2024

Military Bank falls into line

The Australian Military Bank joins ranks with its peers in cutting its fixed rates for owner occupiers and investors by up to 35 basis points.

The highlight is 5.99% p.a. (6.73% p.a. comparison rate*) for owner occupiers fixing for three years, a cut of 31 basis points.

The specialist military bank will generally lend to eligible borrowers with LVRs higher than 80% but those loans will attract lenders mortgage insurance (LMI).

Adelaide Bank pushes SmartSaver fixed rates under 6%

Although Adelaide Bank is perhaps better known as the other half of Bendigo and Adelaide Bank, the two banks offer different home loan products.

Adelaide Bank removed its home loan products from retail sale as at 30 June 2024 and now services the mortgage broker market (and existing home loan customers).

It's shaved up to 65 basis points off new SmartSaver Home Loans for P&I repayments fixed for one or two years.

Its lowest new rate is 5.64% p.a. (6.13% p.a. comparison rate*) fixed for two years.

Best to contact a mortgage broker if you're interested.

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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.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
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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
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 Dillon Kydd on Unsplash



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