Silence from the big four as competitor banks cut fixed mortgage rates
Roisin Kelly-Goldsmith
06 Jul 2017
Several lenders including ING Direct, Macquarie and Bankwest cut fixed home loan rates on principal and interest loans for owner occupiers in June.
According to Mozo’s June Banking Roundup, none of the major banks moved fixed rates during the month, while Bankwest and Macquarie shaved 31 and 25 basis points off their three year fixed mortgage rates, now at 3.78% and 3.99% respectively. ING Direct also cut its three year rates by 20bp to 3.79% and five year rates by 10 basis points to 4.19%.
Several lenders also cut 2 year fixed rates including Bank Australia, Greater Bank, ME, People’s Choice Credit Union, QT Mutual Bank and Select Encompass.
With former RBA board member, John Edwards predicting that Aussies could see eight cash rate hikes in 24 months, borrowers may be tempted to fix their mortgage now.
Peter Marshall, Mozo’s Product Data Manager has urged homeowners to consider their options carefully, saying there’s no way of knowing whether mortgages will climb that high.
“I’ve been hearing mixed opinions on whether the Reserve Bank will raise rates on a scale that Edwards has tipped. On the other side of the coin, investment firm JP Morgan actually suggested that an upcoming rate cut is possible,” he said.
“Sometimes you’re better off just taking in these opinions with a grain of salt and instead looking at your personal situation. If you want consistent loan repayments over a set period of time then think about moving to a fixed rate or splitting part or all of your loan so that you will have a buffer if rates do rise.”
For homeowners in the refinancing market (or those who simply need new fixed rate loan), there are plenty of low rate fixed options out there.
Lowest fixed rates (owner occupiers):
- 1 year: 3.59% (4.48% comparison rate), Greater Bank
- 2 years: 3.69% (4.61% comparison rate), NAB
- 3 years: 3.59% (4.01% comparison rate), Easy Street
- 4 years: 4.04% (3.73% comparison rate), Homestar
- 5 years: 3.89% (4.18% comparison rate), Greater Bank
Refinancing? Compare home loans:
Rates updated daily. Advertiser disclosure.
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Mozo experts choice awards won:
- Offset Home Loan - 2021
- Low Cost Home Loan - 2021
1.85% p.a.variable for 24 months and then 2.25% p.a.
2.21% p.a.
$1234
Product details Close details
Mozo experts choice awards won:
- Offset Home Loan - 2021
- Low Cost Home Loan - 2021
Smart Booster Home Loan
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.85% p.a.variable for 24 months and then 2.25% p.a.
2.21% p.a.
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
Smart Booster Home Loan
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
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$0.00
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$0.00
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yes - free
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yes - free
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Optional - with 0.10% additional interest
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$520
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1.85% p.a.variable for 24 months and then 2.25% p.a.
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2.21% p.a.
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$520
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80.00%
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$50,000
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$1,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Smart Booster Home Loan
Details Close
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p.a.
2.27% p.a.
$1234
Product details Close detailsUHomeLoan
Owner Occupier, Principal & Interest
p.a.
2.27% p.a.
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
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$0.00
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$0.00
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yes - free up to $20,000 during fixed rate term
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no
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no
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$0
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p.a.
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2.27% p.a.
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$0
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80.00%
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$100,000
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$2,000,000
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Fixed
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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$395 Establishment fee waived for fixed rate loans that settle by 30 September 2021.
Read our Mozo Review to learn more about the UHomeLoan
Details Close
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p.a.
2.32% p.a.
$1234
Product details Close detailsBasic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
p.a.
2.32% p.a.
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
Basic Home Loan
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
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$0.00
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$400.00
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yes - free
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yes - free
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no
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$0
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p.a.
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2.32% p.a.
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$0
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70.00%
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$150,000
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$750,000
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Fixed
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Principal & Interest
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Owner Occupier
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Monthly
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Read our Mozo Review to learn more about the Basic Home Loan
Details Close
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Mozo experts choice awards won:
- Home Loan Innovation - 2021
- Investor Home Loan - 2021
- Low Cost Home Loan - 2021
1.99% p.a.
1.99% p.a.
$1234
Product details Close details Mozo experts choice awards won:
- Home Loan Innovation - 2021
- Investor Home Loan - 2021
- Low Cost Home Loan - 2021
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
1.99% p.a.
1.99% p.a.
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
Celebrate Variable Home Loan
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
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$0.00
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$0.00
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yes - free
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yes - free
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no
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$0
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1.99% p.a.
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1.99% p.a.
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$0
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60.00%
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$100,000
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$2,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Details Close
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