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 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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