NAB, Westpac lower home loan rates as new variable deal hits market

This week saw big banks NAB and Westpac handing the central bank's cut on to new and existing home loan holders, with the duo unveiling variable rates as low as 5.34% p.a. 

Blowing such rates out of the water, though, was one far smaller lender debuting one of the lowest variable rates seen in a long while. Read on to find out more.

For existing mortgage holders still waiting for their rate to be reduced following the RBA's August decision, don't panic.

Some lenders won't pass the cut onto existing customers until next week.

So, with all that in mind, let's take a look at this week's major mortgage market moves:

NAB passes RBA rate cut on variable home loans

The first major lender to move in the footsteps of peers CommBank and ANZ this week was NAB.

It slashed rates for new and existing variable rate mortgage holders on Monday, 25 August.

The lowest advertised variable rate in NAB's line-up now sits at 5.69% p.a. (5.73% p.a. comparison rate*), available to owner-occupiers turning to its Basic variable rate home loan.

That rate is available to eligible borrowers with loan-to-value ratios (LVRs) of up to 95%, though those with LVRs of 80% or more will likely be on the hook for Lenders Mortgage Insurance (LMI).

That is, unless you're a first home buyer able to use the soon-to-be-expanded Home Guarantee Scheme – NAB, CommBank, and Westpac all participate in the scheme.

Westpac slashes variable rates in RBA's wake

Speaking of Westpac, it was the last of the big four banks to pass on the RBA's rate cut, dropping variable rates for new and existing borrowers on Tuesday, 26 August.

The lowest variable rate in the Westpac stable is now 5.34% p.a. (5.35% p.a. comparison rate*), advertised to owner-occupiers with LVRs of 70% or less who apply to refinance online.

Don't fit that brief? Westpac offers special rates for plenty of other direct-to-bank refinancers turning to its Flexi First Option home loan product with LVRs of 80% or less:

Borrower	LVR	Interest type	Change	New rate	Comp rate*
Owner-occupier	≤70%	P&I	-0.25	5.34%	5.35%
		IO	-0.25	5.93%	5.88%
	70-80%	P&I	-0.25	5.44%	5.45%
		IO	-0.25	6.03%	5.98%
Investor	≤70%	P&I	-0.25	5.59%	5.60%
		IO	-0.25	5.84%	5.93%
	70-80%	P&I	-0.25	5.69%	5.70%
		IO	-0.25	5.94%	6.02%

4.89% p.a. variable mortgage rate hits market

The home loan market was treated to a long-forgotten sight this week when Easy Street Financial Services launched a new limited-time special variable rate of 4.89% p.a. (4.94% p.a. comparison rate*).

That's offered on its Street Smart Variable Home Loan product for eligible owner-occupiers borrowing at least $500,000 with LVRs of 80% or less.

Perhaps making it more attractive is the two 100% offset accounts available per loan and the optional split rate feature.

Those keeping a close eye on the home loan market might remember Easy Street as having unveiled what appears to be a market-leading fixed rate – as low as 4.69% p.a. (5.26% p.a. comparison rate*) for two years – just last week.

Other variable rate changes

Another slew of RBA rate reactions was put in place this week, with the following lenders cutting variable home loan rates by 25 basis points:

Lender	New lowest advertised variable rate
Adelaide Bank	5.54% (5.71% p.a. comparison rate*)
Arab Bank Australia	5.50% (5.63% p.a. comparison rate*)
Australian Military Bank	5.39% (5.42% p.a. comparison rate*)
Auswide Bank	5.29% (5.32% p.a. comparison rate*)
Bank of Melbourne	5.54% (5.55% p.a. comparison rate*)
Bank of Queensland (BoQ)	5.38% (5.51% p.a. comparison rate*)
Bank of Sydney	5.29% (5.33% p.a. comparison rate*)
Bank of us	5.44% (5.46% p.a. comparison rate*)
BankSA	5.54% (5.55% p.a. comparison rate*)
Bendigo Bank	5.39% (5.52% p.a. comparison rate*)
Beyond Bank	5.39% (5.42% p.a. comparison rate*)
Community First Bank	5.24% (5.29% p.a. comparison rate*)
G&C Mutual Bank	5.20% (5.22% p.a. comparison rate*)
Greater Bank	5.24% (5.25% p.a. comparison rate*)
Great Southern Bank	5.39% (5.45% p.a. comparison rate*)
Heritage Bank	5.24% (5.26% p.a. comparison rate*)
HSBC	5.24% (5.25% p.a. comparison rate*)
IMB	5.29% (5.32% p.a. comparison rate*)
People's Choice	5.24% (5.25% p.a. comparison rate*)
Queensland Country Bank	5.24% (5.61% p.a. comparison rate*)
RACQ	5.14% (5.15% p.a. comparison rate*)
St.George Bank	5.54% (5.55% p.a. comparison rate*)
The Mutual Bank	5.49% (5.49% p.a. comparison rate*)
Tiimely Home	5.29% (5.30% p.a. comparison rate*)
Unity Bank	5.20% (5.22% p.a. comparison rate*)

---

Advertisement

Important Information and Comparison Rate Warning

_{Image by Sonia Sanmartin on Unsplash}