Westpac was the last of the major lenders to lower mortgage rates following the Reserve Bank's May decision, unveiling variable rates as low as 5.59% p.a. (5.60% p.a. comparison rate*).
But it wasn't alone.
Several small and mid-tier lenders – including ING – also reduced their home loan rates, with some now advertising variable rates as low as 5.43%. Bank Australia, meanwhile, continues to lead the market with its green-focused home loan rate.
So, what exactly changed for homebuyers, refinancers, and investors this week? Let's break it down.
Westpac slashes home loan rates to as low as 5.59%
Westpac's Special Online Refinance Offer – available only to those switching an existing loan and applying direct to bank – now offers a rate equal to the lowest advertised at CommBank and ANZ.
The 5.59% p.a. interest rate (5.60% p.a. comparison rate*) is available to eligible refinancers with loan-to-value ratios (LVRs) of less than 70%.
Outside of the special offer, Westpac's new lowest advertised rate is 5.89% p.a. (6.27% p.a. comparison rate*) for owner-occupiers or 6.09% p.a. (6.46% p.a. comparison rate*) for investors.
Meanwhile, Westpac subsidiaries Bank of Melbourne, BankSA, and St George now advertise rates as low as 5.79% p.a. (5.80% p.a. comparison rate*) on their Basic Home Loan offerings.
Rates on Westpac's variable home loan with offset account plus the bank's Rocket Repay Home Loan package – which comes at an annual cost of $395 – now include:
| Borrower | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| Owner-occupier | <70% | -25bp | 5.89% | 6.27% |
| 70–80% | -25bp | 5.99% | 6.36% | |
| >80% | -25bp | 6.29% | 6.66% | |
| Investor | <70% | -25bp | 6.09% | 6.46% |
| 70–80% | -25bp | 6.19% | 6.56% | |
| >80% | -25bp | 6.49% | 6.86% |
ING cuts home loan rates following RBA change
Joining Westpac in cutting mortgage rates this week was ING.
The orange icon dropped variable home loan rates to as low as 5.64% p.a. (5.67% p.a. comparison rate*) and fixed rates to as low as 5.19% p.a. for two or three years (5.60% p.a. and 5.57% comparison rates* respectively).
New variable rates for owner-occupiers making principal and interest repayments include:
| Product | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| Mortgage Simplifier | <80% | -25bp | 5.64% | 5.67% |
| 80-90% | -25bp | 5.84% | 5.87% | |
| 90-95% | -25bp | 6.19% | 6.22% | |
| Orange Advantage (with offset) | <70% | -25bp | 5.64% | 5.94% |
| 70-80% | -25bp | 5.84% | 6.13% | |
| >80% | -25bp | 6.19% | 6.48% |
Bendigo Bank drops variable mortgage rates
For homebuyers, refinancers, or investors, Bendigo Bank's new home loan rates – starting at 5.64% p.a. (5.77% p.a. comparison rate*) – could be worth a gander.
That rate is advertised on its online-only Express Home Loan for owner-occupier buyers and refinancers with LVRs of 90% or less.
For investors making principal and interest repayments, the product now advertises a rate of 5.84% p.a. (5.97% p.a. comparison rate*).
Bank of Queensland cuts variable rates to as low as 5.63%
Another major brand making home loan rate moves this week is Bank of Queensland (BoQ).
Its new lowest variable rate is 5.63% p.a. (5.78% p.a. comparison rate*), available on its Economy Variable Home Loan for new-to-bank owner-occupiers with LVRs of 80% or less.
Meanwhile, new-to-bank investors with LVRs of 80% or less could realise a rate of 5.74% p.a. (5.89% p.a. comparison rate*) on the same product.
Bank Australia rolls out lowest advertised variable home loan rate
Finally, Bank Australia unveiled what appears to be Australia's new lowest variable rate – 5.18% p.a. (5.77% p.a. comparison rate*).
But there's a catch.
The rate is only available to homeowners building a new, environmentally-friendly home with a NatHERS rating of 7.5 stars or more – higher than that prescribed by Australian construction standards.
To be eligible, properties must be all electric, have rooftop solar, and have been built within the last 18 months.
Other home loan interest rate movers
Other lenders moving in the wake of the RBA cut this week include:
| Lender | New lowest variable rate | Comp rate* |
|---|---|---|
| HSBC | 5.49% | 5.50% |
| Bank Orange | 5.44% | 6.66% |
| Hume Bank | 5.49% | 5.50% |
| Homestar Finance | 5.49% | 5.49% |
| Arab Bank | 5.60% | 5.73% |
| The Mutual Bank | 5.49% | 7.08% |
| The Capricornian | 5.64% | 5.69% |
| loans.com.au | 5.49% | 5.95% |
| Bank of China | 5.43% | 5.63% |
| Bank of Sydney | 5.54% | 5.58% |
| RACQ Bank | 5.39% | 5.40% |
| Summerland Bank | 5.44% | 5.49% |
| Great Southern Bank | 5.64% | 5.70% |
| GMCU | 5.69% | 5.85% |
| Australian Military Bank | 5.59% | 5.62% |
| Beyond Bank | 5.64% | 5.67% |
| Queensland Country Bank | 5.49% | 5.85% |
| Easy Street Financial Services | 5.59% | 5.64% |
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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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Image by Kgbo on Wikimedia Commons
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