CBA, ANZ, and Suncorp among latest to cut home loan rates

The central bank dropped the key interest rate by 25 basis points on 12 August, with CommBank and ANZ the first big banks to pass on the savings to home loan borrowers on Friday.

They'll soon be joined by NAB, which will cut rates on Monday, while Westpac will make its move on Tuesday. 

A reminder for borrowers: Just because your interest rate has been cut doesn’t mean your repayments will automatically fall.

Many banks and lenders require home loan holders request to reduce their repayments, lest they effectively make additional repayments. 

Making extra repayments can help a homeowner repay their loan faster and save in interest costs over the years to come, but won't do much to relieve immediate financial pressures. 

So, without further ado, here's the latest movements from Australian mortgage providers (including those cutting home loan rates today): 

CommBank cuts home loan rates 

Australia's largest bank was among the first of its big four peers to move, dropping variable rates by the full 25 basis points across the board. 

The lowest variable rate advertised at CommBank is 5.34% p.a. (5.47% p.a. comparison rate*), offered to owner-occupiers with loan-to-value ratios (LVRs) of 60% or less on its Digi Home Loan product.

That product is only available via the bank's digital channels to direct-to-bank customers only – meaning brokers can't access it. 

Here is the full lineup of variable rates advertised on the product: 

Product	LVR	Interest type	Change	New rate	Comp rate*
Digi Home Loan for owner-occupiers	<60%	P&I	-25bp	5.34%	5.47%
		IO	-25bp	5.83%	5.67%
	<70%	P&I	-25bp	5.37%	5.50%
		IO	-25bp	5.86%	5.70%
	80%	P&I	-25bp	5.39%	5.52%
		IO	-25bp	5.88%	5.72%

ANZ mortgage interest rates drop

Joining CommBank in dropping variable rates this week was the smallest of the big four banks, ANZ.

ANZ's new lowest variable rate is now 5.50% p.a. (5.51% p.a. comparison rate*), available on its digital ANZ Plus Home Loan for eligible borrowers. 

Only a few weeks ago the ANZ Plus Home Loan offered the lowest rate among the big four, but it now sits 16 basis points higher than CommBank's lowest-rate offering.

Suncorp passes on RBA cash rate cut

Meanwhile, ANZ's subsidiary Suncorp Bank also passed along the RBA's rate cut.

The lowest variable rate in its stable is now 5.39% p.a. (5.40% p.a. comparison rate*). 

New leading fixed rate: 4.69% p.a.

But RBA cash rate changes rarely only impact variable mortgage rates. 

Online bank EasyStreet Financial Services unearthed a new, special offer, two year fixed rate of 4.69% p.a. this week (5.26% p.a. comparison rate*).

That's on offer to owner-occupiers and investors, with investors making interest only repayments also eligible to secure the deal. 

With three rate cuts behind us now and no guarantee of more to come, borrowers might be tempted by a number of low-rate fixed deals on the table right now. 

Other variable rate changes

If there was ever a week of home loan interest rate changes, this could be it. Some of the lenders passing on the RBA's rate cut this week included:

Lender	New lowest advertised variable rate
Australian Unity	5.34% p.a. (5.34% p.a. comparison rate*)
Bank Australia	4.93% p.a. (5.38% p.a. comparison rate*)
Bank First	5.24% p.a. (5.27% p.a. comparison rate*)
Bankwest	5.44% p.a. (5.47% p.a. comparison rate*)
Defence Bank	5.44% p.a. (5.44% p.a. comparison rate*)
Gateway Bank	5.49% p.a. (5.78% p.a. comparison rate*)
Goulburn Murray Credit Union	5.44% p.a. (5.60% p.a. comparison rate*)
Qudos Bank	5.19% p.a. (5.19% p.a. comparison rate*)
Reduce Home Loans	5.19% p.a. (5.24% p.a. comparison rate*)
Regional Australia Bank	5.29% p.a. (5.30% p.a. comparison rate*)
Summerland Bank	5.19% p.a. (5.24% p.a. comparison rate*)
Teachers Mutual Group	5.24% p.a. (5.30% p.a. comparison rate*)
UBank	5.39% p.a. (5.41% p.a. comparison rate*)

---

Advertisement

Important Information and Comparison Rate Warning

_{Image by worf on Unsplash}