There has been another influx of lenders lowering home loan interest rates this week, with Macquarie Bank, HSBC, and Bank Australia among them.
Of course, dropping interest rates can be a means for a bank to gain a competitive edge or bolster its loan book.
It could also be a signal that experts housed within it believe the RBA is on the precipice of a cutting cycle.
InfoChoice's database shows 11 lenders altered home loan rates in January, while the number of institutions offering cashbacks dropped from 14 to 10.
The average owner occupier P&I variable rate was 6.55% p.a. compared to 6.83% p.a. for investors - an increase of 20 and 18 basis points over the month respectively.
The RBA board will meet for the first time in 2024 on Tuesday.
The majority of economists, and the market, expect the meeting to result in a cash rate hold on the back of a downside surprise in annual inflation, revealed earlier this week.
None of the big four banks are predicting a cash rate cut in the current half, with each tipping the first to come later this year.
Though, not all home loan lenders reduced mortgage interest rates this week.
IMB and RACQ hiked home loan interest rates by as much as 20 basis points.
Macquarie lowers variable interest rates by up to 21 basis points
For a consecutive week, the nation’s fifth largest lender has appeared in InfoChoice’s regular breakdown of home loan rate changes.
It dropped fixed home loan rates by as much as 56 basis points last week.
This time, it's the bank’s variable rates on the cutting block.
Macquarie Bank slashed its variable home loan interest rates by as much as 21 basis points this week.
Changes for new owner occupiers making principal and interest (P&I) repayments include:
|
Product (owner-occupier) |
Change |
New rate |
|
-9 bps |
6.15% p.a. (6.17% p.a. comparison rate*) |
|
-11 bps |
6.19% p.a. (6.21% p.a. comparison rate*) |
|
-21 bps |
6.39% p.a. (6.41% p.a. comparison rate*) |
|
-11 bps |
7.19% p.a. (7.22% p.a. comparison rate*) |
Meanwhile, new investors making P&I repayments might be able to realise these new rates:
|
Product (investment) |
Change |
New rate |
|
-10 bps |
6.34% p.a. (6.36% p.a. comparison rate*) |
|
-10 bps |
6.34% p.a. (6.36% p.a. comparison rate*) |
|
-9 bps |
6.45% p.a. (6.48% p.a. comparison rate*) |
|
-21 bps |
7.29% p.a. (7.32% p.a. comparison rate*) |
HSBC reduces fixed interest rates by up to 80 basis points
The 159-year-old institution cut many of the fixed rates on both its packaged home loans and its standard offerings.
Changes to the latter, for borrowers with an LVR of between 60% and 80%, include:
|
Product (owner-occupier) |
Change |
New rate |
|
One year fixed |
-60 bps |
6.19% p.a. (7.43% p.a. comparison rate*) |
|
Two years fixed |
-60 bps |
6.19% p.a. (7.30% p.a. comparison rate*) |
|
Three years fixed |
-60 bps |
6.19% p.a. (7.18% p.a. comparison rate*) |
|
Four years fixed |
-80 bps |
6.09% p.a. (7.04% p.a. comparison rate*) |
|
Five years fixed |
-80 bps |
6.19% p.a. (6.98% p.a. comparison rate*) |
Orange Credit Union slashes fixed rates by as much as 100 basis points
This week’s largest move was made by the member-owned Orange Credit Union, based in Orange, NSW with products available nationwide.
The credit union is one of Australia's smaller institutions with less than $200 million in home loans on its books at the end of 2023.
The bank now offers one of the market’s most competitive rates for fixed terms of one year, according to InfoChoice market research.
Both owner-occupiers and investors with LVRs of up to 95% are able to take advantage of a 5.94% p.a. one year fixed rate, with this week's changes including:
|
Product |
Change |
New rate |
|
Fixed one year |
-30 bps |
5.94% p.a. (7.30% p.a. comparison rate*) |
|
Fixed two years |
-90 bps |
5.99% p.a. (7.17% p.a. comparison rate*) |
|
Fixed three years |
-100 bps |
6.14% p.a. (7.09% p.a. comparison rate*) |
|
Investment, fixed one year |
-30 bps |
5.94% p.a. (7.30% p.a. comparison rate*) |
|
Investment, fixed two years |
-90 bps |
5.99% p.a. (7.17% p.a. comparison rate*) |
|
Investment, fixed three years |
-100 bps |
6.14% p.a. (7.09% p.a. comparison rate*) |
IMB and RACQ hike home loan interest rates
Among a sea of home loan interest rate cuts, IMB and RACQ Bank stand out as hikers.
IMB increased some of its fixed mortgage interest rates by as much as 20 basis points this week, while RACQ Bank upped some fixed and variable rates by 10 basis points.
Other lenders cutting home loan interest rates
Here are other home loan lenders cutting interest rates this week, ordered by the size of cuts, from largest to smallest:
- Greater Bank dropped fixed and variable interest rates by up to 45 basis points
- Great Southern Bank reduced variable interest rates by up to 25 basis points
- Bank Australia lowered fixed interest rates by up to 20 basis points
- Newcastle Permanent decreased fixed and variable interest rates by as much as 11 basis points
- Bank of Sydney cut variable interest rates by 10 basis points
Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option Tags Features Link Compare
Featured Online ExclusiveUP TO $4K CASHBACK
Featured APPLY IN MINUTES
Image by Patrick Ryan on Unsplash.
Need help with a home loan?