Several lenders cut fixed rates this week including IMB Bank and Greater Bank, the latter revealing a new market leading low.
Fixed rates continue to drop in anticipation of further cash rate cuts with less than a fortnight until the next monetary policy decision.
It would be one of the biggest shocks in the history of the RBA if the August meeting doesn’t result in a cut – 54% of the market is expecting a double sized 50 basis point reduction.
The June quarter inflation numbers (set for release 30 July) will likely be the deciding factor, but with unemployment unexpectedly up and monthly inflation showing prices continue to moderate it’s difficult to imagine these numbers will bring a significant upward surprise, and ergo a surprise from the RBA.
With forthcoming cuts to variable rates expected, lenders are having to drop fixed rates further and further to tempt borrowers to lock a rate in – here are the latest cuts.
Greater Bank cuts fixed rates 0.05%
Greater Bank stole the headlines this week, offering new market leading low rates to both owner occupiers and investors.
Owner occupiers can now pay just 4.94% p.a. for both two and three year fixed terms on the Ultimate Home Loan (7.07% p.a. and 6.88% p.a. comparison rates* respectively) after 5 basis points were shaved from the headline rate.
That’s the lowest rate in the YourMortgage database that isn’t a Green Home Loan.
Read more: Greater Bank cut home loan rates
Here are all of the new owner occupier rates for principal and interest repayments:
| Product | Interest rate change |
|---|---|
| Ultimate Fixed One Year | Down 5 bps to 5.44% p.a. (7.33% p.a. comparison rate*) |
| Ultimate Fixed Two Year | Down 5 bps to 4.94% p.a. (7.07% p.a. comparison rate*) |
| Ultimate Fixed Three Year | Down 5 bps to 4.94% p.a. (6.88% p.a. comparison rate*) |
| Ultimate Fixed Four Year | Down 5 bps to 5.34% p.a. (6.84% p.a. comparison rate*) |
| Ultimate Fixed Four Year | Down 5 bps to 5.34% p.a. (6.72% p.a. comparison rate*) |
And for investors:
| Product | Interest rate change |
|---|---|
| Ultimate Investment Fixed One Year | Down 5 bps to 5.54% p.a. (7.67% p.a. comparison rate*) |
| Ultimate Investment Fixed Two Year | Down 5 bps to 5.04% p.a. (7.38% p.a. comparison rate*) |
| Ultimate Investment Fixed Three Year | Down 5 bps to 5.04% p.a. (7.16% p.a. comparison rate*) |
| Ultimate Investment Fixed Four Year | Down 5 bps to 5.44% p.a. (7.11% p.a. comparison rate*) |
| Ultimate Investment Fixed Four Year | Down 5 bps to 5.44% p.a. (6.96% p.a. comparison rate*) |
IMB Bank cuts fixed rates
IMB Bank also cut fixed rates this week and while not quite as low as Greater Bank, its new two year fixed rate of 5.09% p.a. (5.69% p.a. comparison rate*) is still among the lowest on our database.
These are the new IMB rates for owner occupiers making P&I repayments:
| Product | Interest rate change |
|---|---|
| One Year Fixed | 5.39% p.a. (5.77% p.a. comparison rate*) |
| Two Year Fixed | 5.09% p.a. (5.69% p.a. comparison rate*) |
| Three Year Fixed | 5.19% p.a. (5.66% p.a. comparison rate*) |
| Five Year Fixed | 5.59% p.a. (5.76% p.a. comparison rate*) |
And for investors:
| Product | Interest rate change |
|---|---|
| One Year Fixed | 5.59% p.a. (5.77% p.a. comparison rate*) |
| Two Year Fixed | 5.29% p.a. (5.69% p.a. comparison rate*) |
| Three Year Fixed | 5.39% p.a. (5.66% p.a. comparison rate*) |
| Five Year Fixed | 5.69% p.a. (5.76% p.a. comparison rate*) |
Other movers
- Australian Military Bank cut fixed rates by up to 0.50%
- P&N Bank and BCU Bank both cut fixed rates by up to 0.80%
Image by Kaleb Tapp on Unsplash
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
5.54% p.a. |
5.58% p.a. |
$2,852 |
Principal & Interest |
Variable |
$0 |
$530 |
90% |
|
Promoted |
Disclosure | ||||||||||
|
5.49% p.a. |
5.40% p.a. |
$2,836 |
Principal & Interest |
Variable |
$0 |
$0 |
80% |
|
Promoted |
Disclosure | ||||||||||
|
5.64% p.a. |
5.89% p.a. |
$2,883 |
Principal & Interest |
Variable |
$250 |
$250 |
60% |
|
Promoted |
Disclosure | ||||||||||
|
5.64% p.a. |
5.89% p.a. |
$2,883 |
Principal & Interest |
Variable |
$248 |
$350 |
60% |
|
|
Important Information and Comparison Rate Warning
