ABS home loans data showed less than 2% of all new home loans (including refinances) written in August - the latest data - were on fixed interest rates.
This is barely an uptick on the previous month, despite a lot of the deep fixed rate cuts starting in August.
However as a colleague rightly pointed out to me, many of these home loans would be settled in September - this will be interesting to watch and data on that release will be out on 1 November.
Lenders are also continuing to cut despite an uptick in wholesale funding rates lately. The outlier is Macquarie, quick to the punch, having increased fixed rates this week.
Anyway - let's highlight some of the lenders that cut variable rates this week.
BOQ cuts variable rates for investors
| Product | Rate % Per Annum (Comparison Rate*) | Change |
|---|---|---|
| Inv Economy P&I Special Offer >80% | 6.54% (6.68%) | -0.05 |
| Inv Clear Path P&I Special Offer <80% | 6.49% (6.61%) | -0.10 |
Bank of Queensland came to the fray with some modest adjustments. A few interest-only loans for investors were also cut by similar proportions.
The main difference is that the Clear Path product is a packaged loan.
ME Bank, a BOQ subsidiary that has been driving much of the group's retail presence lately, also cut rates - reflected below.
ME Bank variable rate cuts
| Product | Rate % Per Annum (Comparison Rate*) | Change |
|---|---|---|
| Inv Basic Home Loan P&I<80% | 6.24% (6.26%) | -0.35 |
| Inv Basic Home Loan P&I >80% | 6.54% (6.56%) | -0.05 |
ME Bank also cut a raft of interest-only loans, as well as rates on Member Package products.
ME remains one of the outliers in the market to continue to offer cashback deals.
Hume Bank cuts 'Blue' variable rates da ba di
| Product | Rate % Per Annum (Comparison Rate*) | Change |
|---|---|---|
| OO LiteBlue Variable P&I <90% | 6.29% (6.30%) | -0.20 |
| OO MyBlue Variable P&I <90% | 6.39% (6.39%) | -0.30 |
| Inv LiteBlue Variable P&I <90% | 6.44% (6.45%) | -0.35 |
| Inv MyBlue Variable P&I <90% | 6.54% (6.54%) | -0.35 |
Lower rates apply if the LVR is lower.
A whole host of investor interest-only loans were also cut, as were a bunch of fixed rates.
The key difference between LiteBlue and MyBlue is that the latter comes with an offset account.
Newcastle Permanent proves it's the 'Real Deal'
| Product | Rate % Per Annum (Comparison Rate*) | Change |
|---|---|---|
| OO Real Deal P&I Special Offer <80% | 5.99% (6.03%) | -0.05 |
| Inv Real Deal P&I Special Offer <80% | 6.19% (6.23%) | -0.05 |
A fairly modest series of changes from one of the largest customer-owned banks this week, however it's enough to bring the owner occupier rate below the coveted 6% threshold.
A series of other rates were also cut, including those for interest-only loans and higher LVRs.
Newcastle Permanent remains one of the outliers in the market to continue to offer cashback deals.
Other moves
- Athena cuts fixed rates by up to 85 basis points
- Bank of China cut fixed and variable rates by up to 182 basis points
- Easy Street cuts fixed rates by up to 20 basis points
- Community First cuts fixed rates by up to 20 basis points
- Unity Bank cuts fixed rates by up to 50 basis points
- Police Bank cuts 3-year fixed rates by up to 20 basis points
- Goulburn Murray CU cuts fixed rates by up to 15 basis points
- QBank cuts fixed rates by up to 60 basis points
- IMB takes 10 basis points off its Budget variable home loan rate
- Bank First cuts fixed rates by up to 44 basis points
- Summerland Bank cuts fixed rates by up to 25 basis points
Photo by Manny Moreno on Unsplash
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