The Reserve Bank of Australia (RBA) board came together once more this week to do exactly as the market expected – nothing much.

The board chose to hold the cash rate at its 12-year high of 4.35% at its September meeting, saying it's not making any downward move until underlying (not headline) annual inflation sustainably returns to its target of 2% to 3%.

On that note, the monthly inflation read – which measures a smaller 'basket of goods' than its quarterly counterpart and was released on Wednesday – showed we're slowly making ground in the economic battle.

The Australian Bureau of Statistics' (ABS') latest consumer price index shows headline inflation rose 2.7% in the 12 months to August – the smallest rise in two years.

However, underlying (trimmed mean) inflation remained outside the RBA's target band, coming in at 3.4%.

All this suggests that, while high interest rates are working to cool the economy, progress remains slow and relief might still be some time away.

Nevertheless, many lenders seem to be taking matters into their own hands, with these mutual banks slashing home loan interest rates this week.

Teachers Mutual & Co cut variable and fixed rates

Teachers Mutual Bank and subsidiaries UniBank, Firefighters Mutual Bank, Health Professionals Bank, and Hiver slashed interest rates by as much as 25 basis points this week, with both variable and fixed rates receiving a haircut.

Changes to variable rates on the group's Your Way basic home loan product for borrowers making principal and interest repayments included:

Product / LVR Change New Interest Rate (p.a.) Comparison Rate* (p.a.)
Owner-occupier, LVR ≤80% -5bp 6.09% 6.15%
Owner-occupier, LVR >80% -5bp 6.74% 6.81%
Investor, LVR ≤80% -5bp 6.39% 6.45%
Investor, LVR >80% -5bp 7.04% 7.11%

Meanwhile, it's Your Way Plus product, which offers a discounted interest rate (and an extra 5 basis point discount for essential workers), an offset account, and multiple waived fees, saw these rate cuts for owner-occupiers:

LVR Change New Interest Rate (p.a.) Comparison Rate* (p.a.)
≤60% -15bp 6.14% 6.44%
60%-80% -5bp 6.24% 6.54%
80%-90% -5bp 6.69% 6.98%
≥90% -5bp 6.94% 7.23%

Meanwhile, the group's fixed rate lineup saw cuts of up to 25 basis points, with its basic Your Way product now offering rates from 6.09% p.a. for owner-occupiers and from 6.39% p.a. for investors.

Regional Australia Bank slashed rates to as low as 5.53% p.a.

Regional Australia Bank also slashed some of its fixed rate offerings this week, unveiling rates as low as 5.53% p.a.

Check out these new rates for owner-occupiers making principal and interest repayments:

Fixed Period LVR Change New Rate (p.a.) Comparison Rate* (p.a.)
One year <60% -11bp 6.03% 6.00%
60-70% -14bp 6.04% 6.05%
70-80% -11bp 6.07% 6.10%
80-90% -12bp 6.33% 6.47%
Two years <60% -24bp 5.65% 5.93%
60-70% -24bp 5.66% 5.97%
70-80% -21bp 5.69% 6.02%
80-90% -21bp 5.95% 6.38%
Three years <60% -21bp 5.53% 5.87%
60-70% -24bp 5.54% 5.91%
70-80% -21bp 5.57% 5.95%
80-90% -21bp 5.84% 6.30%
Four years <60% -20bp 5.63% 5.87%
60-70% -23bp 5.64% 5.90%
70-80% -20bp 5.67% 5.95%
80-90% -20bp 5.94% 6.28%
Five years <60% -19bp 5.73% 5.89%
60-70% -22bp 5.74% 5.92%
70-80% -19bp 5.77% 5.96%
80-90% -20bp 6.03% 6.29%

Adelaide Bank dropped rates for owner-occupiers by up to 65 basis points

Finally, Adelaide Bank made notable cuts to its fixed home loan offerings this week.

It put forward this week's biggest drop, at 65 basis points, on its SmartSaver and SmartFix products for those who fix their rate for one or two years.

The bank's SmartSaver product doesn't charge monthly fees, while its SmartFix product comes with an offset account and charges a $15 monthly fee.

It's new rates for owner-occupiers making principal and interest repayments are as follows:

Fixed Period Product Change New Rate (p.a.) Comparison Rate* (p.a.)
One year SmartSaver -35bp 5.94% 6.21%
SmartFix -35bp 5.94% 6.38%
Two years SmartSaver -65bp 5.64% 6.29%
SmartFix -65bp 5.64% 6.13%

Other movers

  • Australian Military Bank drops fixed rates for owner-occupiers and investors by up to 35 basis points
  • Newcastle Permanent lowers fixed rates for owner-occupiers and investors by up to 30 basis points
  • Northern Inland Credit Union cut fixed rates for owner-occupiers and investors by up to 20 basis points
  • BankVic lowered rates on its offset home loans for owner-occupiers and investors by up to 20 basis points

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Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Featured 4.6 STAR CUSTOMER RATINGS
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset
Disclosure
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$350
60%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

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