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

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 TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 STAR CUSTOMER RATINGS
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
Disclosure
5.99% p.a.
6.44% p.a.
$2,995
Principal & Interest
Variable
$0
$530
90%
  • No application, ongoing monthly or annual fees.
  • Available for refinance or purchases. Quick and easy online application process.
  • Dedicated loan specialist throughout the loan application.
  • Discounted interest rate for 5 years for homes with an eligible solar system
Disclosure
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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