Every week for a while now we've come to expect fixed-rate home loan cuts flooding our database and inbox.
As this is the first rate wrap of the month, let's go over some September highlights.
Across the month we observed 23 providers making adjustments; significant reductions have been seen in the 1-year, 2-year, and 5-year terms for both Owner-Occupied and Investment loans.
The average rate drops reached up to 45 bps, which was seen across investor loans fixed for 1 or 5 years.
The average owner occupier P&I rate is now 5.81% p.a. which is a drop of 22 basis points on the previous month.
Macquarie Bank fixed-rate cuts
| Product | New Rate % p.a. (Change) | Comparison Rate* |
|---|---|---|
| Basic Owner Occupier Fixed 1 Year | 5.85% (-0.04) | 6.18% |
| Basic Owner Occupier Fixed 2 Year | 5.49% (-0.20) | 6.08% |
| Basic Owner Occupier Fixed 3 Year | 5.49% (-0.20) | 6.02% |
| Basic Owner Occupier Fixed 4 Year | 5.49% (-0.40) | 5.96% |
| Basic Owner Occupier Fixed 5 Year | 5.49% (-0.40) | 5.91% |
| Basic Investor Fixed 1 Year | 5.99% (-0.06) | 6.43% |
| Basic Investor Fixed 2 Year | 5.65% (-0.24) | 6.32% |
| Basic Investor Fixed 3 Year | 5.65% (-0.24) | 6.25% |
| Basic Investor Fixed 4 Year | 5.65% (-0.44) | 6.18% |
| Basic Investor Fixed 5 Year | 5.65% (-0.44) | 6.12% |
The above rates are for 80% LVR, paying principal & interest. Different rates apply for different LVRs and for interest-only payments.
The big brand is not done with rate cuts, being busy recently making adjustments across its range of fixed terms.
This follows at least two series of cuts in August and one in September.
This week the most noteworthy item is the rate harmonisation for terms between 2 and 5 years.
As the major banks - until recently - have retreated from the mortgage wars, Macquarie Bank has been busy gathering market share.
Over the first eight months of 2024, Macquarie's loan book has grown by nearly $10 billion or around 8.3% - above system, and generally above the major banks.
HSBC moves lower on variable rates
| Product | New % Rate p.a. (Change) | Comparison Rate* |
|---|---|---|
| OO Home Value P&I 60% | 5.99% (-0.05) | 5.99% |
| Inv Home Value P&I 60% | 6.19% (-0.05) | 6.19% |
This week HSBC was one of the more prominent providers to cut variable home loan rates.
Quite a few individual products were cut; generally speaking, advertised rates increase by about 5 basis points when jumping to 80% LVR.
The most noteworthy thing with the above rates is that the comparison rate is the same as the advertised rate, which indicates there are few, if any, extra fees or funny business going on.
Bank Australia dishes up juicy new green home loan rates
| Product | New % Rate p.a. (Change) | Comparison Rate* |
|---|---|---|
| Clean Energy Eco Plus 3 Year Fixed 90% | 5.24% (-0.45) | 6.24% |
| Clean Energy Eco 3 Year Fixed 90% | 5.34% (-0.45) | 6.27% |
A very interesting series of cuts by Bank Australia if a borrower has a green home.
To qualify for the Eco loan you'll need at least a 7-star NatHERS rating, while for the Eco Plus you'll need 7.5-stars.
More information on what's required can be found on the Bank Australia website, or on our green loans guide.
Bank Australia also cut a lot of different rates across fixed terms, too.
Other moves
- Australian Mutual Bank cuts fixed rates by up to 45 basis points
- The Mutual Bank cuts fixed rates by 40 basis points
- Illawarra Credit Union cuts variable and fixed rates by up to 35 basis points
- BankVic cuts variable rates by as much as 20 basis points
- RACQ Bank cuts some fixed rates by 50 basis points
- G&C Mutual Bank cuts fixed rates by up to 30 basis points
Photo by Naomi Hebert on Unsplash
Need help with a home loan?