Lenders slash variable and fixed rate mortgages

The Reserve Bank of Australia has stubbornly resisted cutting interest rates in recent years but some lenders have been slashing their variable rate, and fixed rate mortgages anyway.

Which lenders are cutting their home loan rates?

While there have been plenty of lenders dropping fixed rates in recent months, few have cut their variable rates. That changed last week when ANZ, AMP Bank and Bendigo and Adelaide Bank bucked the trend.

ANZ Bank has slashed the rate on its Simplicity Plus principal and interest mortgage product  with loan to valuation ratio under 80 per cent by 0.37 percentage points to 4.09 per cent.

AMP Bank has cut its variable home loan interest rate for new borrowers to 3.79 per cent for owner occupiers with a principal and interest loan amount between $500,000 and $750,000.

Bendigo Bank has cut its basic variable rate for owner occupiers with a principal and interest home loan by a whopping 0.49 percentage points to 3.79 per cent.

More than 40 banks, credit unions and other mortgage lenders have cut their fixed home loan rates in 2019 including NAB and Virgin Money.

Virgin Money has slashed three-year fixed rates by 0.30 percentage points and five-year rates by 0.40 percentage points. Virgin Money’s three-year interest-only rate for investors is now just 3.89 per cent.

What is the lowest variable home loan rate in Australia for owner-occupier borrowers?

The lowest variable home loan interest rate in Australia in May 2019 is 3.48 per cent (comparison rate 3.50 per cent) from Loans.com.au’s Smart Home Loan.

Easystreet’s Standard Variable Home Loan is charging 3.49 per cent (comparison rate 3.52 per cent).

UBank’s Discount Offer for owner-occupiers on loan amounts between $220,000 and $700,000 is currently set at 3.59 per cent (comparison rate also 3.59 per cent).

Homestar’s Owner Occupied (P&I) home loan is currently charging 3.54 per cent (comparison rate 3.58 per cent).

The lowest home loan mortgage interest rate currently on offer from a big bank is from National Australia Bank’s Base Variable Rate Home Loan – Principal and Interest which is currently charging 3.69 per cent (comparison rate 3.73 per cent).

Compare variable rate home loans from all of Australia’s major lenders here.

What is the lowest fixed home loan rate in Australia for owner-occupier borrowers?

Fixed rate home loans are more popular with property investors than owner occupiers but some borrowers prefer the certainty of knowing what they will be paying each month, no matter what happens with interest rates.

The most popular fixed rate terms are one year and three years.

UBank is currently offering a fixed interest rate for owner occupiers of 3.59 per cent for one year and 3.74 per cent for three years (comparison rate 4.01 per cent).

AMP Bank has one year fixed rates for owner-occupiers set at 4.15 per cent and three year rates at 3.85 per cent (comparison rate 3.73 per cent).

Bank Australia’s Premium Package Loan is offering rates from 3.84 per cent for one and three year terms (comparison rate from 4.33 per cent).

Compare fixed rate home loans from all of Australia’s major lenders here.

Advertisements