Home loan borrowers holding out for a November rate cut were likely buoyed by Thursday's unemployment data, released by the ABS.
The nation's unemployment rate jumped to 4.5% in September, above consensus expectations and its highest level since late-2021.
While the figures added weight to a near-term RBA cut, the majority of big four economists – including those at ANZ, NAB and CommBank – still expect the central bank to hold next month.
They generally noted upcoming quarterly inflation figures will likely be the most prominent data driving the central bank's decision making.
Bond traders, however, are now pricing in a full 25 basis point cut by December – three months earlier than they were just a week ago.
In the meantime, Suncorp Bank has wiped as much as 40 basis points off advertised home loan interest rates, while Bankwest has dropped select rates by 10 basis points.
Suncorp Bank slashes fixed and variable mortgage rates
Suncorp cut variable rates by up to 40 basis points for owner-occupiers and investors, though it lifted one two-year fixed offer for owner-occupiers.
Fixed rates now start at 4.89% p.a. for two years (5.75% p.a. comparison rate*) for owner-occupiers (+0.10% p.a.).
The lowest fixed rates on the bank's books are available to borrowers making principal and interest repayments and boasting loan-to-value ratios (LVRs) of 80% or less.
Meanwhile, new variable rates from the bank include:
| Product | Borrower | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|---|
| Back to Basics Better Together (special offer) | Owner-occupier (IO) | ≤60% | -30bp | 5.69% | 5.52% |
| 60-70% | -31bp | 5.69% | 5.53% | ||
| 70-80% | -31bp | 5.79% | 5.57% | ||
| Investor (IO) | ≤70% | -5bp | 5.65% | 5.56% | |
| 70-80% | -10bp | 5.65% | 5.57% | ||
| Home Package Plus | Owner-occupier (IO) | ≤60% | -30bp | 5.79% | 5.93% |
| 60-70% | -31bp | 5.79% | 5.95% | ||
| 70-80% | -31bp | 5.89% | 6.00% | ||
| Investor (P&I) | >80% | -20bp | 6.14% | 6.49% | |
| Investor (IO) | ≤70% | -12bp | 5.68% | 5.93% | |
| 70-80% | -16bp | 5.68% | 5.93% | ||
| >80% | -20bp | 6.14% | 6.47% |
The special offer on the bank's Back to Basics home loan product is available to borrowers linking a new loan of at least $150,000 to a Suncorp Everyday Options Account.
Meanwhile, the Home Package Plus is available as an add-on for select Suncorp home loans and demands a $375 annual fee.
Bankwest drops select variable rates
Bankwest also lowered some rates on its packaged and non-packaged offerings by 10 basis points on Friday.
New rates are available to owner-occupiers with LVRs of 60% to 80%, with lower LVRs eligible for lower rates and higher LVRs attracting higher rates.
Changes made to Bankwest's variable home loan rates for owner-occupiers making principal and interest repayments are as follows:
| Product name | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| Complete Home Loan | 60-80% | -10bp | 5.49% | 5.89^ |
| Simple Home Loan | 60-80% | -10bp | 5.49% | 5.52% |
Bankwest's Complete Home Loan comes with an offset account and a fee-free credit card at the cost of a $395 annual fee.
Borrowers taking out a Simple Home Loan can opt into an offset account for a $10 monthly fee.
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Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
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