May home loans snapshot: HSBC and ING emerge as new fixed rate leaders
In good news for Australian borrowers and refinancers, the recent downward trend in home loan interest rates has continued, according to new Mozo research released this morning.
Figures from the latest Mozo Banking Roundup reveal that mortgage lenders continued to drop both home loan rates throughout May, but as in previous months, changes to fixed rates largely outweighed those to variable rates.
Among the most significant recent fixed rate movements, AMP slashed 35 - 185 basis points off select fixed package loan rates while neobank 86 400 cut its own fixed rate offers by between 15 - 25 basis points.
On the flip side, ANZ increased fixed rates on its Breakfree Package loan by up to 10 basis points, while online lenders Reduce Home Loans and Well Home Loans also increased what were previously rate-leading offers.
The increases from Reduce and Well now leave HSBC and ING sitting pretty as the rate leaders in the Mozo database in four of five fixed rate terms. Here are the five database-leading fixed rates and the Mozo averages as of June 1, 2020:
| Term | Rate leader | Fixed rate | Average |
|---|---|---|---|
| 1 year | Newcastle Permanent | 2.18% (3.83% comparison rate*) | 3.03% |
| 2 year | HSBC and ING | 2.09% (3.09% and 3.77% comparison rates*) | 2.98% |
| 3 year | ING | 2.14% (3.62% comparison rate*) | 3.01% |
| 4 year | HSBC | 2.40% (3.13% comparison rate*) | 3.36% |
| 5 year | ING | 2.54% (3.50% comparison rate*) | 3.38% |
Variable rates trend down
While there was a lower volume of variable home loan rate changes in May compared to fixed changes, cuts continued to flow.
There was a bit of jostling at the most competitive end of the market, with three lenders - Homestar, Reduce Home Loans and Tic:Toc - now offering a variable rate of 2.39% for owner occupiers. That’s currently the lowest in the Mozo database.
Online lender Homestar has cut its Star Essentials loan by 5 basis points to 2.39% (2.39% comparison rate*) and Tic:Toc shaved 15 basis points off its Variable Home Loan meaning that it also sits at 2.39% (2.40% comparison rate*).
The Reduce Home Loan Rate Slasher rate of 2.39% (2.40% comparison rate*) remains unchanged.
As a result of the various rate changes, the average variable rate in the Mozo database (based on a $400k, OO, P&I loan with an 80% LVR) dropped fractionally over the month from 3.44% to 3.43%.
RELATED: Macquarie Bank slashes fixed rates by up to 0.35%
Don’t think your current home loan rate is up to scratch anymore? Find out just how much you could save by using our handy switch and save calculator, or see how it stacks up against some of the hot offers in the table below.
Compare fixed home loans - page last updated October 27, 2020
Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
Sorted by:
Mozo Order
- loans.com.au
2.29% p.a.
fixed 2 years2.81% p.a.
loans.com.auSpecial Offer Fixed Rate Home Loan
Owner Occupier, Principal & Interest
2.29% p.a.
fixed 2 years2.81% p.a.
This 3 Year Fixed Rate Special Offer for purchase or refinance. Rate lock option available. No monthly or ongoing fees.
Go to siteCompare - HSBC
2.09% p.a.
fixed 2 years2.98% p.a.
HSBCFixed Rate Home Loan
Owner Occupier, Principal & Interest, LVR <80%
2.09% p.a.
fixed 2 years2.98% p.a.
Have the security of a fixed rate for 2 years with the option to split with one of the HSBC variable Home Loans. No ongoing monthly service fees or annual fees. Mozo Experts Choice Fixed Home Loan 2020^
Go to siteCompare - Homestar
1.98% p.a.
fixed 1 year2.41% p.a.
CompareDetailsHomestarStar Classic Fixed Home Loan
Principal & Interest
1.98% p.a.
fixed 1 year2.41% p.a.
Enjoy a new and unbelievably low introductory rate home loan for one year. Unlimited free online redraws and additional repayments up to $20K to help you pay off your home sooner. Multiple loan splits possible and flexible replacements. (Rates revert after introductory period ends).
Compare - UBank
2.14% p.a.
fixed 1 year2.48% p.a.
UBankUHomeLoan (1 Yr Fixed)
Owner Occupier, Principal & Interest
2.14% p.a.
fixed 1 year2.48% p.a.
Fast, easy apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans. Winner of a Mozo Experts Choice Award 2019 in the Fixed Rate Home Loan category.^
Go to siteCompare Hot Deal$2,000 Refinance Cash Bonus (T&Cs apply)
Suncorp2.29% p.a.
fixed 2 years3.28% p.a.
SuncorpFixed Home Loan Special Offer
Owner Occupier, Principal & Interest
2.29% p.a.
fixed 2 years3.28% p.a.
No monthly account keeping fees & No loan establishment fee. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply.
Go to siteCompare
^See information about the Mozo Experts Choice Home Loans Awards
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