Rate Watch: Greater Bank cuts fixed rates as NAB hikes

By Gerv Tacadena

One lender slashed the rates of its variable rates for owner-occupiers by as much as 60 basis points.

Several lenders made big changes to their rate offerings over the past week. Here are the lenders who made substantial adjustments to their mortgage rates:

Greater Bank

Greater Bank has lowered the rates of its fixed-rate roster. Its lowest fixed rate is now at 1.59% p.a. which is applicable to the standard and discounted offers under the Great Rate Fixed 1-Year and 2-Year products.

The bank also reduced rates by between 20 and 30 basis points (bps) to its variable products for both investors and owner-occupiers.

Here are some notable changes:

  • Great Rate Fixed 1-Year:  10bps cut to 1.59% p.a. (3.48% p.a. comparison rate)
  • Great Rate Fixed 2-Year: 20bps cut to 1.59% p.a. (3.31% p.a. comparison rate)
  • Great Rate Discount Variable $150k+ ≤90%LVR: 20bps cut to 2.19% p.a. (2.2% p.a. comparison rate)
  • Great Rate Discount Investment Variable P&I $150k+:  30bps cut to 2.29% p.a. (2.3% p.a. comparison rate).

NAB

Major bank NAB hiked the three- to five-year fixed rates of its Tailored Fixed and Choice Package products. These changes apply to those paying principal and interest.

The changes are as follows:

Choice Package

  • 3-Year:  up to 10bps increase to 2.18% p.a. (3.88% p.a. comparison rate).
  • 4-Year: up to 25bps increase to 2.49% p.a. (3.85% p.a. comparison rate).
  • 5-Year: up to 30bps increase to 2.79% p.a. (3.87% p.a. comparison rate).

Tailor Fixed:

  • 3-Year: up to 10bps increase to 2.28% p.a. (4.07% p.a. comparison rate).
  • 4-Year: up to 25bps increase to 2.59% p.a. (4.01% p.a. comparison rate).
  • 5-Year: up to 30bps increase to 2.89% p.a. (3.99% p.a. comparison rate).

Aussie Home Loans

Aussie has made cuts to the rate of its Select Basic Variable product line. Cuts of between 10 to 30 bps were made to the product options for owner-occupiers and investors.

The new rates are as follows:

Owner-Occupier Select Basic Variable P&I

  • ≤60%: 2.19% p.a. (2.21% p.a. comparison rate)
  • 60-70%: 2.19% p.a. (2.21% p.a. comparison rate)
  • 70-80%: 2.29% p.a. (2.31% p.a. comparison rate)
  • 80-90%: 2.29% p.a. (2.31% p.a. comparison rate)
  • 90-95%: 2.99% p.a. (3.01% p.a. comparison rate)

Investment Select Basic Variable P&I

  • ≤60%: 2.44% p.a. (2.46% p.a. comparison rate)
  • 60-70%: 2.49% p.a. (2.51% p.a. comparison rate)
  • 70-80%: 2.49% p.a. (2.51% p.a. comparison rate)
  • 80-90%: 2.99% p.a. (3.01% p.a. comparison rate)

ING

ING recently announced rate reductions of up to 60bps for its Orange Advantage and Mortgage Simplifier products. The changes are for both investor and owner-occupier loans.

Here are some highlights:

  • Orange Advantage Variable IO 500-999k: 60bps cut to 2.99% p.a. (3.33% p.a. comparison rate)
  • Mortgage Simplifier IO 500-999k: 60bps cut to 2.94% p.a. (2.96% p.a. comparison rate)
  • Investor Orange Advantage Variable IO 500k+: 15bps cut to 2.94% p.a. (3.28% p.a. comparison rate)
  • Investor Mortgage Simplifier IO 500k+: 15bps cut to 2.89% p.a. (2.91% p.a. comparison rate)

Gateway Bank

Gateway also made adjustments to its rates under its Premium Investment Fixed and Premium Investment Variable product line-up.

The changes are for borrowers on an interest-only payment terms.

Here are the new rates:

  • Premium Investment Fixed 1-Year IO 150k+: 2.85% (3.86% p.a. comparison rate)
  • Premium Investment Fixed 2-Year IO 150k+: 2.85% (3.80% p.a. comparison rate)
  • Premium Investment Fixed 3-Year IO 150k+: 2.95% (3.76% p.a. comparison rate)
  • Premium Investment Fixed 5-Year IO 150k+: 3.05% (3.71% p.a. comparison rate)
  • Premium Investment Variable 80% IO 150k+: 2.79% (3.12% p.a. comparison rate)
  • Premium Investment Variable IO 80% Special Offer 500k+: 2.79% (3.12% p.a. comparison rate)
  • Investor Low Rate Essentials IO: 2.75% (2.78% p.a. comparison rate)

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