Inflation figures released this week shocked many commentators, coming in below consensus.
That suggested the Reserve Bank of Australia (RBA) may have successfully tamed the inflationary beast, meaning cash rate cuts could soon emerge.
Indeed, all four big banks now predict the first cut is just weeks away.
The RBA board will meet on 17 February to discuss the cash rate (among other things), with its decision to be announced on 18 February.
If the meeting results in a 25 basis point cash rate cut, it could herald a swathe of variable interest rate cuts.
So, these rate cuts may be a preview of what's to come – unless the RBA decides to hold, that is.
Qudos Bank drops lowest variable rate offering
Qudos Bank has reduced rates on its No Frills home loan product, lowering rates for both owner-occupiers and investors by 10 basis points (bp).
This mortgage represents a low-cost option with no ongoing fees, though it also lacks features such as an offset account.
Here're the new rates on offer:
Borrower/rate type | LVR | New rate | Comp rate* |
---|---|---|---|
Owner-occupier P&I | <70% | 5.89% (-10bp) | 5.89% |
70-80% | 5.99% (-10bp) | 5.99% | |
Investor P&I | <70% | 6.09% (-10bp) | 6.09% |
Investor IO | 6.34% (-10bp) | 6.34% | |
Investor P&I | 70-80% | 6.19% (-10bp) | 6.19% |
Investor IO | 6.44% (-10bp) | 6.44% |
Illawarra Credit Union cuts variable rates by up to 15bp
Illawarra Credit Union has reduced rates across its variable home loans, cutting some by up to 15 basis points.
The changes apply to its Bare Essentials home loan, its The Works Packaged mortgage product, and its Standard variable rate options.
- The Bare Essentials home loan is a fee-free loan that includes a redraw facility.
- The Works Packaged mortgage comes with an offset account and a fee-free credit card, though it has an annual fee of $395.
Check out some of its new rates:
Borrower | Product | New rate |
Comp rate* |
---|---|---|---|
Owner -occupier |
The Works Package |
6.04% (-15bp) |
6.48% |
Bare Essentials |
5.94% (-15bp) |
6.04% | |
Investor | The Works Package |
6.34% (-5bp) |
6.78% |
Bare Essentials |
6.24% (-5bp) |
6.34% |
MOVE Bank cuts fixed and variable rates by up to 30bp
Finally, former Railways Credit Union, MOVE Bank slashed rates on its Everyday and Offset home loan products.
It now advertises variable rates as low as 5.94% p.a. and fixed rates starting at 5.64% p.a.
Though, there is a catch.
To receive many of its best rates, home loan borrowers must deposit at least $1,500 per month into a MOVE Bank transaction account.
Here are the newly cut variable rates on offer to owner-occupiers:
LVR | Product | New rate |
Comp rate* |
---|---|---|---|
<80% | Everyday | 5.94% (-5bp) |
5.99% |
Offset | 6.14% (-5bp) |
6.19% | |
80-90% | Everyday | 6.09% (-5bp) |
6.14% |
Offset | 6.29% (-5bp) |
6.34% | |
>90% | Everyday | 6.24% (-5bp) |
6.29% |
Offset | 6.44% (-5bp) |
6.49% |
Meanwhile, new fixed rates for owner-occupiers are as follows:
Fixed period |
Product | New rate |
Comp rate* |
---|---|---|---|
One year |
Everyday | 5.84% (-15bp) |
5.98% |
Offset | 6.11% (-8bp) |
6.18% | |
Two years |
Everyday | 5.64% (-30bp) |
5.93% |
Offset | 5.85% (-29bp) |
6.13% | |
Three years |
Everyday | 5.69% (-15bp) |
5.92% |
Four years |
Everyday | 5.84% (-20bp) |
5.94% |
Advertisement
Lender Home Loan Interest 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 Tags Features Link Compare Promoted Product Disclosure
4.6 STAR CUSTOMER RATINGS
Promoted
Disclosure
Disclosure
Disclosure
Image by master1305 on freepik
Share