- Bendigo Bank hiked fixed rates on its Express home loan offering by up to 40 basis points
- Greater Bank and Great Southern Bank made changes to their fixed rates
- Recently-merged People's Choice and Heritage Bank lowered variable home loan rates
Most notably, large regional bank Bendigo Bank increased the fixed rates on its Express online only home loan product.
Other movers include Greater Bank, Great Southern Bank, Heritage Bank, and People’s Choice.
Bendigo Bank boosts certain fixed rates by up to 40 basis points
Find many of the most significant changes made by the $5 billion regional lender below:
- Express Fixed P&I 1 year ≤90% loan-to-value ratio (LVR): 17 basis point increase to 6.34% per annum (p.a.)(5.93% p.a. comparison rate*)
- Express Fixed P&I 2 years ≤90% LVR: 25 basis point increase to 6.24% p.a. (5.97% p.a. comparison rate*)
- Express Fixed P&I 3 years ≤90% LVR: 25 basis point increase to 6.24% p.a. (6.01% p.a. comparison rate*)
- Express Fixed P&I 4 years ≤90% LVR: 30 basis point increase to 6.24% p.a. (6.06% p.a. comparison rate*)
- Express Fixed P&I 5 years ≤90% LVR: 35 basis point increase to 6.29% p.a. (6.12% p.a. comparison rate*)
- Investment Express Fixed P&I 1 year ≤90% LVR: 10 basis point increase to 6.59% p.a. (6.18% p.a. comparison rate*)
- Investment Express Fixed P&I 2 years ≤90% LVR: 15 basis point increase to 6.49% p.a. (6.22% p.a. comparison rate*)
- Investment Express Fixed P&I 3 years ≤90% LVR: 30 basis point increase to 6.49% p.a. (6.27% p.a. comparison rate*)
- Investment Express Fixed P&I 4 years ≤90% LVR: 35 basis point increase to 6.49% p.a. (6.31% p.a. comparison rate*)
- Investment Express Fixed P&I 5 years ≤90% LVR: 40 basis point increase to 6.54% p.a. (6.37% p.a. comparison rate*)
Other lenders making fixed interest rate changes
Mutual banks Greater Bank and Great Southern Bank also modified the rates offered on their fixed home loans.
The former lowered fixed interest rates on many of its investor loans, with the largest move including:
- Ultimate Investment P&I Fixed 4 years ≤95% LVR: 20 basis point decrease to 6.09% p.a. (7.50% p.a. comparison rate*)
- Great Rate Investment Fixed P&I 5 years ≤95% LVR: 20 basis point decrease to 6.09% p.a. (7.15% p.a. comparison rate*)
The changes made by the latter, meanwhile, included:
- Fixed P&I 3 years ≤95% LVR: 25 basis point increase to 6.49% p.a. (7.44% p.a. comparison rate*)
- Fixed P&I 5 years ≤95% LVR: 25 basis point increase to 6.69% p.a. (7.33% p.a. comparison rate*)
These banks lowered variable home loan rates
There was better news this week for hopeful-borrowers looking to take out a variable rate home loan, with two recently merged lenders dropping their offered rates by 10 basis points.
However, there is a catch. The revised rates are on home loans with LVRs of between 60% and 80%.
Take these changes from People’s Choice, for example:
- Home Loan Package Standard Variable P&I $100k+ 60%-80% LVR: 10 basis point decrease to 5.79% p.a. (6.26% p.a. comparison rate*)
- Home Loan Package Inv Standard Variable P&I $100k+ 60%-80% LVR: 10 basis point decrease to 6.04% p.a. (6.41% p.a. comparison rate*)
And similar moves posted by Heritage Bank this week:
- Home Advantage Variable $700k+ 70-80% LVR: 10 basis point decrease to 5.89% p.a. (6.21% p.a. comparison rate*)
- Home Advantage Investment Variable P&I $700k+ 70%-80% LVR: 10 basis point decrease to 6.14% p.a. (6.46% p.a. comparison rate*)
Heritage Bank and People’s Choice merged in March and plan to continue operating over their respective brands for the time being.
A new name for the outfit is expected to be revealed shortly.
Image by Naomi Hébert on Unsplash.
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