Regional Australia Bank was on our radar before this week, on the basis of competitive rates and a solid cashback offer, but Wednesday morning saw the lender take the lead.
It slashed rates on its fixed home loan offerings to as low as 5.25% p.a., four basis points below those advertised by the likes of Bankwest and Australian Mutual Bank.
For reference, only one rate within the Your Mortgage database sits lower, at 5.14% p.a. for a three year fixed period, provided by Bank Australia to those building new eco-friendly homes.
Bank Australia's Clean Energy Home Loan is backed by the Clean Energy Finance Corporation, while Regional Australia Bank's offer appears to be purely a competitive play.
The lowest fixed rate on offer from Regional Australia Bank is available to owner-occupiers with loan-to-value ratios (LVRs) of 70% or less fixing their rate for two years.
Meanwhile, the 5.30% p.a. interest rate advertised for those fixing for three years is also best-in-class.
If you're considering a Regional Australia Bank home loan – whether to purchase or refinance an existing loan – you might also be in for a chunk of change.
The bank currently offers up to $4,000 cashback to borrowers taking out new loans with LVRs of 80% or less.
So, with all that covered, let's dive into the market-leading rates slapped onto the table on Wednesday:
Owner-occupier: Fixed rates starting at 5.25% p.a.
Home loan borrowers considering fixing their interest rate might be tempted by these new offerings, many of which are the lowest on offer for their given fixed period:
| Fixed period | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| One year | <60% | -32bp | 5.40% | 5.67% |
| 60-70% | -32bp | 5.40% | 5.73% | |
| 70-80% | -27bp | 5.50% | 5.79% | |
| 80-90% | -40bp | 5.68% | 6.09% | |
| >90% | -34bp | 6.16% | 6.52% | |
| Two years | <60% | -36bp | 5.25% | 5.62% |
| 60-70% | -36bp | 5.25% | 5.66% | |
| 70-80% | -31bp | 5.35% | 5.73% | |
| 80-90% | -45bp | 5.52% | 6.02% | |
| >90% | -39bp | 6.00% | 6.45% | |
| Three years | <60% | -30bp | 5.30% | 5.59% |
| 60-70% | -30bp | 5.30% | 5.63% | |
| 70-80% | -26bp | 5.39% | 5.70% | |
| 80-90% | -39bp | 5.57% | 5.98% | |
| >90% | -33bp | 6.05% | 6.42% | |
| Four years | <60% | -22bp | 5.52% | 5.64% |
| 60-70% | -22bp | 5.52% | 5.68% | |
| 70-80% | -18bp | 5.61% | 5.75% | |
| 80-90% | -31bp | 5.79% | 6.02% | |
| >90% | -26bp | 6.27% | 6.46% | |
| Five years | <60% | -14bp | 5.74% | 5.72% |
| 60-70% | -14bp | 5.74% | 5.75% | |
| 70-80% | -10bp | 5.83% | 5.83% | |
| 80-90% | -24bp | 6.01% | 6.09% | |
| >90% | -18bp | 6.49% | 6.53% |
If you're in the market for a variable rate home loan, however, Regional Australia Bank's rates start at 5.69% p.a. for owner-occupiers with LVRs of 60% or less.
Other competitive variable home loan rates include:
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 Row Tags Features Link Compare Promoted Product Disclosure
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Investors: Fixed rates from 5.46% p.a.
The bank doesn't quite take the cake when it comes to investment home loan rates.
Its lowest rate – 5.46% p.a. offered to investors fixing their rate for two years – remains seven basis points higher than what looks to be the lowest on the market – 5.39% p.a. from Australian Mutual Bank for those fixing for three years.
Though, while not market-leading, Regional Australia Bank's rates for rental properties are certainly eye catching.
The following rates are available to investors making principal and interest repayments:
| Fixed period | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| One year | <60% | -15bp | 5.62% | 5.80% |
| 60-70% | -21bp | 5.76% | 6.00% | |
| 70-80% | -18bp | 5.84% | 6.06% | |
| 80-90% | -37bp | 6.02% | 6.41% | |
| Two years | <60% | -20bp | 5.46% | 5.75% |
| 60-70% | -26bp | 5.60% | 5.95% | |
| 70-80% | -22bp | 5.69% | 6.01% | |
| 80-90% | -41bp | 5.87% | 6.34% | |
| Three years | <60% | -14bp | 5.51% | 5.74% |
| 60-70% | -20bp | 5.65% | 5.93% | |
| 70-80% | -17bp | 5.73% | 5.99% | |
| 80-90% | -35bp | 5.92% | 6.30% | |
| Four years | <60% | -6bp | 5.73% | 5.79% |
| 60-70% | -12bp | 5.87% | 5.98% | |
| 70-80% | -10bp | 5.95% | 6.04% | |
| 80-90% | -27bp | 6.14% | 6.34% | |
| Five years | <60% | +2bp | 5.95% | 5.88% |
| 60-70% | -4bp | 6.09% | 6.06% | |
| 70-80% | -2bp | 6.17% | 6.12% | |
| 80-90% | -2bp | 6.36% | 6.41% |
Image by Zoe Askew on Unsplash
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