The moves were mostly cuts - just one interest-only loan was increased - across a whole gamut of products fixed for 1-5 years - some by small amounts, some by large and rather peculiar amounts.
For the purpose of brevity we'll focus on a handful of basic home loans for owner occupiers and investors paying principal & interest (P&I).
- Basic OO 80% 1 Year: 76 basis point cut to 5.99% p.a. (6.14% p.a. comparison rate*)
- Basic OO 80% 2 Years: 50 basis point cut to 5.89% p.a. (6.16% p.a. comparison rate*)
- Basic OO 80% 3 Years: 46 basis point cut to 5.89% p.a. (6.13% p.a. comparison rate*)
- Basic OO 80% 4 Years: 60 basis point cut to 5.89% p.a. (6.11% p.a. comparison rate*)
- Basic OO 80% 5 Years: 60 basis point cut to 5.89% p.a. (6.08% p.a. comparison rate*)
Macquarie's cuts for investors included:
- Basic Inv 80% 1 Year: 70 basis point cut to 6.15% p.a. (6.44% p.a. comparison rate*)
- Basic Inv 80% 2 Years: 56 basis point cut to 6.09% p.a. (6.40% p.a. comparison rate*)
- Basic Inv 80% 3 Years: 56 basis point cut to 6.09% p.a. (6.37% p.a. comparison rate*)
- Basic Inv 80% 4 Years: 66 basis point cut to 6.09% p.a. (6.34% p.a. comparison rate*)
- Basic Inv 80% 5 Years: 66 basis point cut to 6.09% p.a. (6.32% p.a. comparison rate*)
The moves largely appear to be rate harmonisation especially among longer terms, and the moves are similar to NAB's cuts made back in late July.
To have longer terms with lower interest rates than shorter terms is noteworthy, given RBA data indicates there is an 82 basis point gap in favour of terms three years or shorter.
InfoChoice data for July also indicates the 1-year P&I rate for owner occupiers was 6.48% p.a. - 17 basis points lower than June.
For 5-years it was 6.70% p.a. - flat on the month.
InfoChoice research indicates the cheapest fixed rate available is from the Bank of Heritage Isle, with its first home buyer special fixed for three years at 5.59% p.a. (5.85% p.a. comparison rate*)
Photo by Dominic Kurniawan-Suryaputra on Unsplash
Need help with a home loan?