- CommBank's Unloan opens lending to new borrowers
- Bendigo Bank-backed Tiimely Home cuts rates on investor home loan products
- Teachers Mutual Bank & subsidiaries Unibank, Firefighters Mutual Bank, and Health Professionals Bank hike variable mortgage rates
What a week it has been in the home loan segment.
Not only have we had some notable names making mortgage interest rate moves, we’ve also heard some interesting news from the United States.
Inflation in the world’s largest economy is still running hot, coming in at 3.5% on an annual basis, despite the nation’s central bank being around six months ahead of Australia’s in terms of rate movements.
That led some commentators to speculate that a 2024 rate cut could be off the table for Australia.
Though, none of the forecasts put forward by the big four banks have been adjusted on the international figures, with CommBank, NAB, Westpac, and ANZ still expecting the Reserve Bank of Australia’s first rate cut to occur in either September or November.
In better news, soon-to-be home loan borrowers have a new near-market leading interest rate to choose from after Unloan scrapped its ‘refinance only’ mandate.
CommBank’s Unloan opens up to purchasers
CommBank-backed digital lender Unloan made headlines this week when it officially opened its books to new home loans.
The lender was birthed in 2022 and had previously only ever offered mortgages to refinancers.
It currently offers a variable rate as low as 5.99% p.a. (5.90% p.a. comparison rate*) for owner occupiers. And those signing onto its advertised rate now might realise an even lower rate this time next year.
The lender offers a unique annual discount, cutting the interest rate on home loans by one basis point for every year a borrower stays loyal, up to a maximum annual discount of 30 basis points.
Bendigo Bank-backed Tiimely Home drops investment rates by 10 basis points
Another day, another big bank-backed digital lender.
Bendigo Bank – Australia’s seventh largest bank by market capitalisation – is the brand behind Tiimely Home, formerly Tic:Toc. And Tiimely Home brought good news for investors this week.
The lender slashed the offered interest rates on its one year fixed investment home loan by 10 basis points, bringing it to 6.24% p.a. (6.29% p.a. comparison rate*) for those making principal and interest repayments.
For those after an interest only investment loan, the lender now offers a variable rate of 6.54% p.a. (6.32% p.a. comparison rate*) or a one year fixed rate of 6.34% p.a. (6.30% p.a. comparison rate*).
Teachers Mutual Bank & co hike variable home loan rates
There’s been a lot of interest rate movement at Teachers Mutual Bank and subsidiaries Unibank, Firefighters Mutual Bank, and Health Professionals Bank in recent times.
The group binned its high interest Target Saver savings account late last month and cut some of its term deposit interest rates the following week.
Now, it's upping the interest rates charged on its variable Your Way home loan product.
Changes for owner-occupiers making principal and interest repayments include:
|
Product Name |
Loan-to-value ratio |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Your Way Basic Home Loan |
≤80% |
10 basis points |
6.24% |
6.30% |
|
Your Way Plus Home Loan |
80-90% |
10 basis points |
6.74% |
7.03% |
|
Your Way Plus Home Loan |
60-80% |
10 basis points |
6.49% |
6.79% |
|
Your Way Plus Home Loan |
≤60% |
10 basis points |
6.49% |
6.79% |
Other movers
- Auswide Bank varied its fixed and variable home loan interest rates by up to 45 basis points
Image by Roberto Nickson on Unsplash
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