Add CategoryNAB became the first big four bank to slash home loan interest rates in 2024 amid a big week for mortgage moves.
Things are heating up in the home loan space ahead of a highly anticipated Reserve Bank of Australia (RBA) cash rate decision.
As speculation of a cash rate hike – a move that would drive home loan rates higher – mounts, many of the market's notable players were dropping interest rates.
The RBA board will come together in the first week of August to weigh up whether yet-to-be released inflation data is enough of a worry to warrant a rate hike.
Most experts and commentators agree that a hike is less likely than a hold, but few are willing to rule out an upwards movement.
But all that's still to come, and plenty has already happened that hopeful home loan borrowers and wishful refinancers will want to know about.
That includes the first interest rate cut from a major bank in 2024, with NAB slashing rates on certain fixed terms by up to 60 basis points.
Let's jump in.
NAB slashes fixed interest rates by 60 basis points
NAB officially has the lowest advertised interest rate of any big four bank after it cut rates offered on three-year fixed rate periods to under 6.00% p.a.
NAB's Tailored Home Loan product now offers a rate of just 5.99% p.a. for borrowers with loan-to-value ratios (LVRs) of 70% or less.
Those with LVRs of up to 80%, meanwhile, could potentially secure a rate of 6.04% for three years.
Changes made by the big bank this week included:
|
Product |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
NAB Tailored Home Loan |
≤60% |
-60bp |
5.99% |
6.64% |
|
NAB Tailored Home Loan |
60-70% |
-60bp |
5.99% |
6.64% |
|
NAB Tailored Home Loan |
70-80% |
-60bp |
6.04% |
6.80% |
|
NAB Tailored Home Loan |
≥80% |
-60bp |
6.04% |
6.80% |
Ubank drops variable home loan rates
Joining in on its parent company's actions was Ubank, cutting rates for investors and owner-occupiers making interest only repayments this week.
Here's what would-be borrowers need to know:
|
Product |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Flex Variable |
<60% |
-5bp |
6.64% |
6.58% |
|
Flex Variable |
60-80% |
-5bp |
6.69% |
6.63% |
|
Investment Flex Variable |
<60% |
-10bp |
6.29% |
6.53% |
|
Investment Flex Variable |
60-80% |
-10bp |
6.34% |
6.58% |
Horizon Bank slashes home loan interest rates to as low as 5.64%
Horizon Bank debuted a new, near-market-leading home loan interest rate this week, cutting that on its three-year fixed product by five basis points to 5.64% p.a.
Few home loans best such an advertised rate right now and it will no doubt turn heads.
Interestingly, however, the lender lifted rates offered on five-year fixed periods, insinuating it expects rates to wobble in the years to come.
This week's changes for owner-occupiers making principal and interest repayments were:
|
Product |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Fixed Rate Home Loan |
≤70% |
-10bp |
5.89% |
6.51% |
|
Fixed Rate Home Loan |
≤70% |
-10bp |
5.69% |
6.42% |
|
Fixed Rate Home Loan |
≤70% |
-5bp |
5.64% |
6.33% |
|
Fixed Rate Home Loan |
≤70% |
+10bp |
5.79% |
6.27% |
Meanwhile, these changes might catch the attention of investors making principal and interest repayments:
|
Product |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Fixed Rate Investment Loan |
≤70% |
-10bp |
6.14% |
6.76% |
|
Fixed Rate Investment Loan |
≤70% |
-10bp |
5.94% |
6.67% |
|
Fixed Rate Investment Loan |
≤70% |
-5bp |
5.89% |
6.58% |
|
Fixed Rate Investment Loan |
≤70% |
+10bp |
6.04% |
6.52% |
HSBC & Credit Union SA shake up special offer rates
Multinational banking giant HSBC and South Australian mutual Credit Union SA made notable home loan rate moves in the 'special offer space' this week.
HSBC lifted the rate promised to new borrowers taking out a packaged home loan and making principal and interest repayments, with changes including:
|
Product |
LVR |
Change |
New rate (p.a.) |
Min LVR |
|
Home Loan Package Variable P&I |
70-80% |
+10bp |
6.29% |
6.65% |
|
Home Loan Package Variable P&I |
80-90% |
+10bp |
6.59% |
6.95% |
At the same time, Credit Union SA slashed the special rate offered for owner-occupiers taking out a new variable rate, principal and interest home loan.
Changes include:
|
Product |
LVR |
Change |
New rate (p.a.) |
Comparison rate* (p.a.) |
|
Variable Home Loan Package |
≤60% |
-10bp |
6.04% |
6.41% |
|
Variable Home Loan Package |
<80% |
-10bp |
6.09% |
6.46% |
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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 | 90% | |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||
6.14% p.a. | 6.39% p.a. | $2,434 | Principal & Interest | Variable | $248 | $350 | 70% | |||||||||
6.14% p.a. | 6.19% p.a. | $2,434 | Principal & Interest | Variable | $0 | $595 | 70% | |||||||||
6.14% p.a. | 6.17% p.a. | $2,434 | Principal & Interest | Variable | $0 | $799 | 80% | |||||||||
6.09% p.a. | 6.11% p.a. | $2,421 | Principal & Interest | Variable | $0 | $250 | 60% |
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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