Fixed rate frenzy: Bendigo & Adelaide slash up to 90bps

The final home loan rate cuts spurred by the Reserve Bank of Australia's (RBA) 20 May cash rate drop appear to have been passed on. 

La Trobe Financial was among the slowest movers, passing savings onto most home loan borrowers from 16 June.

Interestingly, no lender appears to have refused to pass on the RBA's cut to their broader mortgage book – leaving Virgin Money alone in having done so so far this cycle.

With most moves in the variable rate space already having occurred, this week saw a swell of fixed rate changes. Let's dive into them:

Bendigo Bank & peers slash fixed home loan rates

Community-focused Bendigo Bank, its stablemate Adelaide Bank, and Bendigo-backed Tiimely Home all slashed fixed rates by as much as 90 basis points this week.

The largest moves came from the Adelaide Bank portfolio, which is on track to be merged with Bendigo Bank's systems later this year and the Adelaide Bank brand to be retired.

Headline fixed rates offered on Adelaide Bank's two mortgage products – SmartFix and SmartSaver – now line up exactly with those on Bendigo Bank's Complete Home Loan product.

Owner-occupiers and investors making principal and interest repayments turning to the Bendigo Bank product can now realise the following rates:

Borrower	Fixed rate period	Change	New rate	Comp rate*
Owner-occupier	One year	-35bp	5.64%	6.00%
	Two years	-30bp	5.39%	5.94%
	Three years	-50bp	5.39%	5.90%
	Four years	-40bp	5.59%	5.94%
	Five years	-40bp	5.59%	5.93%
Investor	One year	-25bp	5.84%	6.01%
	Two years	-40bp	5.59%	5.94%
	Three years	-50bp	5.59%	5.91%
	Four years	-50bp	5.79%	5.95%
	Five years	-60bp	5.79%	5.94%

However, those rates are now beaten by Tiimely Home's offerings.

The digital lender cut its fixed rates by up to 75 basis points, dropping them to as low as 5.29% p.a. on two- and three-year fixed periods (comparison rates* 5.50% and 5.48% p.a. respectively).

Also noteworthy is Tiimely Home's ongoing $2,000 cashback offer, available to eligible property owners borrowing at least $500,000 and fixing their rate for two years.

The Mutual Bank unveils 5.49% p.a. variable rate

Meanwhile, The Mutual Bank dropped its special offer variable rate on its Budget Home Loan product by 10 basis points to 5.49% p.a. (5.49% p.a. comparison rate*).

That's available to eligible owner-occupiers with deposits of at least 20% – or loan-to-value ratios (LVRs) of 80% or less.

That sees it among the lowest rates available for LVRs over 60%, according to Your Mortgage's database, alongside offerings from the likes of Unloan, Newcastle Permanent, and Community First Bank.

Other movers

In addition to the rate changes above, plenty of lenders took knives to fixed rates over the course of the week just been.

They include:

• Newcastle Permanent dropped fixed rates by up to 30 basis points
• Greater Bank cut fixed rates by up to 40 basis points
• Heritage Bank lowered fixed rates by up to 40 basis points
• BankVic slashed fixed rates by up to 51 basis points

Meanwhile, The Capricornian and Regional Australia Bank slashed select fixed and variable rates by up to 179 basis points and 51 basis points respectively.

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Important Information and Comparison Rate Warning

_{Image by Neon Wang on Unsplash}