GDP figures for the March quarter released on Wednesday demonstrate a soft economy, with the longest per-capita recession on record, and meagre household savings to boot.

Retail trade is also very soft, with consumers largely pulling back on their discretionary spending.

The only area of spending seemingly increasing is services - that pesky stuff a lot of people have no choice but to pay. This is leading the charge in a shock rebound in the inflation figures.

That said, as they say, the best form of welfare is a job, and the job market, while softening, remains very robust with an unemployment rate of just 4.1%.

At its last board meeting, the RBA monetary policy team tabled rate hike discussion once again, noting a slight pickup in inflation.

While it wasn't enough to move the needle, on Wednesday RBA governor Michelle Bullock said, if inflation "starts to go up again or it's much stickier than we think, we're not getting it down, then we won't hesitate to move and raise interest rates again".

That hasn't deterred the lending molasses however, with the value of lending picking up substantially in April, and average loan sizes skyrocketing

And with all that money borrowed, best find a competitive deal then...

Bank First edges higher on variable rates

Victorian Teachers Limited, trading as Bank First and the 10th-largest customer owned bank in terms of assets, increased rates on some variable rate mortgages by 10 to 15 basis points.

Key to the portfolio include:

  • OO Basic Home Loan P&I 90%: 10 basis points up to 6.49% p.a. (6.52% p.a. comparison rate*)
  • Inv Basic Home Loan P&I 90%: 10 basis points up to 6.89% p.a. (6.92% p.a. comparison rate*)

Other types of home loans, including offset, construction, package, and interest-only loans, were increased by similar margins.

MyState Bank makes a small adjustment

Just one change from the Tasmanian-based bank this week:

  • OO Basic Variable 70-80%: 5 basis point increase to 6.19% p.a. (6.22% p.a. comparison rate*)

IMB increases on OO, while decreasing for investors

The eighth-largest customer-owned bank increased rates on some owner occupier home loans by 5 basis points, while decreasing on a host of investment home loans by up to 15 basis points. 

Some key to the portfolio are:

  • OO Essentials P&I 80%: 5 basis point increase to 6.24% p.a. (6.35% p.a. comparison rate*)
  • Inv Essentials P&I 90%: 15 basis point decrease to 6.44% p.a. (6.61% p.a. comparison rate*)

IMB's 'Essentials' line comes with an offset account, while its 'Budget' line does not.


Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUP TO $4K CASHBACK
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
  • 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.
6.04% p.a.
6.06% p.a.
Principal & Interest
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

Image by Freepik