Add CategoryBendigo Bank dropped interest rates on select investment home loans by as much as 45 basis points this week.
The regional-focused competitor's move came amid a revision from NAB, with experts at the big four bank now tipping the first cash rate cut to come in May 2025.
NAB was previously forecasting the Reserve Bank of Australia (RBA) to drop the cash rate in November, putting an end to a hiking-holding cycle that, by that stage, would have lasted around two and a half years.
But home loan borrowers' hearts might have dropped on the release of the latest monthly inflation data.
Consumer prices rose 4.0% over the year to May, up from April's 3.6% annual rise, and a full percentage point higher than the top of the RBA's target rage, the Australian Bureau of Statistics (ABS) found.
But not all was dire this week.
For starters, CommBank and Westpac are still forecasting a rate cut in November 2024, with ANZ only slightly less optimistic in predicting a February cut.
There was also an exciting happening in the home loan rate space. The market saw some notable interest rate cuts from Bendigo Bank and Bank First.
Bendigo Bank slashes variable rates on investment home loans
If you're a property investor, you might have found your eye caught by a series of rate cuts put forward by Bendigo Bank this week.
The institution dropped rates on its Complete Home Loan product for investors, with changes to variable rates including:
|
Product |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Investment Complete Home Loan Interest only (IO) |
≤60% |
-20bp |
6.59% |
6.60% |
|
Investment Complete Home Loan IO |
60-80% |
-45bp |
6.64% |
6.68% |
|
Investment Complete Home LoanPrincipal and interest (P&I) |
60-80% |
-20bp |
6.34% |
6.56% |
|
Investment Complete Home Loan P&I |
80-90% |
-35bp |
6.54% |
6.76% |
Bank First cuts variable rates by 5 basis points
Finally, mutual bank Bank First dropped some of its variable home loan rates this week.
Products impacted included its Basic range, its Complete Home Loan lineup, and its Premier Package products.
The lowest rates for owner-occupiers are offered on its Basic range, with changes to the offerings including:
|
Product Name |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Basic Home Loan Owner-occupier P&I |
≤60% |
-5bp |
6.04% |
6.07% |
|
Basic Home Loan Owner-occupier P&I |
60-80% |
-5bp |
6.19% |
6.22% |
|
Basic Home Loan Investor P&I |
≤60% |
-5bp |
6.29% |
6.32% |
|
Basic Home Loan Investor P&I |
60-80% |
-5bp |
6.39% |
6.42% |
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | |||||||||
5.92% p.a. | 7.57% p.a. | $2,885 | Principal & Interest | Variable | $0 | $400 | 95% | |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||
5.99% p.a. | 6.04% p.a. | $2,396 | Principal & Interest | Variable | $0 | $300 | 60% | |||||||||
5.99% p.a. | 6.04% p.a. | $2,396 | Principal & Interest | Variable | $0 | $500 | 60% | |||||||||
6.14% p.a. | 6.16% p.a. | $2,434 | Principal & Interest | Variable | $0 | $350 | 60% | |||||||||
6.14% p.a. | 6.39% p.a. | $2,434 | Principal & Interest | Variable | $248 | $350 | 70% |
Important Information and Comparison Rate Warning
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .
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