Bank Australia makes big changes to fixed and variable home loan rates

This morning, Bank Australia made big changes to its range of fixed and variable home loans, cutting rates for both owner occupiers and investors to stay in line with dropping market interest rates.

It wasn’t that long ago that Bank Australia was crowned Australia's Best Customer Owned Bank our annual Mozo Experts Choice Awards, so it’s safe to say it knows a thing or two about keeping customers happy.

Today’s changes saw reductions of 0.16% applied to variable rates, bringing the Bank Australia Basic Home Loan Special down to 3.35% (3.36% comparison rate*). 

And if you’re looking to lock in a rate for a year or more you’ll be pleased to see so many cuts to fixed home loan options. Most notably, the Basic Home Loan two year fixed option saw a massive 0.60% cut, taking it down to 3.04% p.a. (3.50% p.a. comparison rate*).

Meanwhile, owner occupiers who sign up for the Premium Home Loan (Fixed, Package) will be offered even more impressive rates, with two year fixed options going as low as 2.94% p.a. (3.66% p.a. comparison rate*). There is a catch, however: you’ll need to have a deposit of at least 30% to apply.

As for investors, they’ll be looking at variable rates starting at 3.76% p.a. variable rate (3.80% p.a. comparison rate*), as offered by the Mozo Experts Choice Award winning Basic Home Loan.

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Last updated 14 July 2024 Important disclosures and comparison rate warning*
Bank Australia - Basic Home Loan Special
  • Rates as low as 3.35% (3.36% comparison rate*)
  • Free extra repayments and redraw facility
  • Make repayments weekly, fortnightly or monthly
Find out more

With rates starting from 3.35% (3.36% comparison rate*), the Bank Australia Basic Home Loan Special makes for an affordable, feature-rich option. You’ll find there’s lots of flexibility when it comes to how you’ll pay down your loan, with weekly, fortnightly and monthly repayments available. And if you want to make extra repayments, access a redraw facility, or even take a repayment holiday, you’ll be able to do so without being slapped with any penalties (though you’ll have to have had the loan for at least 12 months and have an LVR of 90% to apply for the repayment holiday).

Bank Australia - Basic Home Loan
  • 3.04% p.a. (3.50% comparison rate*) two year rate
  • Borrow with as little as a 5% deposit
  • Up to $20,000 in free extra repayments each year
Find out more

The Bank Australia Basic Home Loan (Fixed) swaps all the bells and whistles for a super competitive rate. Lock in a two year term and you’ll be treated to a low 3.04% p.a. (3.50% comparison rate*). What’s more, owner occupiers will be able to borrow up to 95% of a property’s value, making it an attractive option for first home buyers looking who might be struggling to make it up on the property ladder.

If you’re looking for more great deals, be sure to visit our variable rate home loan comparison page. Or if you’d like to see the fixed options currently available, our fixed rate home loan comparison page offers an in-depth look.

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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