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
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Promoted
UBank
3.59% p.a.
3.59% p.a.
$1234
Product details Close detailsUBank UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
3.59% p.a.
3.59% p.a.
Enjoy a low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply, simply choose between flexible repayments and make extra repayments for free. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.
UHomeLoan - Discount Offer
Enjoy a low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply, simply choose between flexible repayments and make extra repayments for free. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.
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$0.00
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$0.00
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yes - free
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yes
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no
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3.59% p.a.
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3.59% p.a.
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$0
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80.00%
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$200,000
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$699,999
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
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Promoted
Athena3.59% p.a.
3.57% p.a.
$1234
Product details Close detailsAthenaVariable Home Loan
Owner Occupier, Principal & Interest
3.59% p.a.
3.57% p.a.
Featuring no application fees, no monthly fees & no annual fees, new-comer Athena, brings you stay-great rates for the entirety of the loan, so you pay it off faster. A digital and direct lender, Athena's goal is to pass the savings onto you.
Variable Home Loan
Featuring no application fees, no monthly fees & no annual fees, new-comer Athena, brings you stay-great rates for the entirety of the loan, so you pay it off faster. A digital and direct lender, Athena's goal is to pass the savings onto you.
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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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3.59% p.a.
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3.57% p.a.
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$488
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80.00%
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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
Read our Mozo Review to learn more about the Variable Home Loan
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Promoted
HSBC 3.59% p.a.
3.61% p.a.
$1234
Product details Close detailsHSBC Discounted Home Value Loan
Owner Occupier, Principal & Interest
3.59% p.a.
3.61% p.a.
Enjoy a discounted rate for the life of the loan plus $0 establishment fee when you apply by 30 April (t&cs apply). Get help with the application process with an HSBC relationship manager. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.
Discounted Home Value Loan
Enjoy a discounted rate for the life of the loan plus $0 establishment fee when you apply by 30 April (t&cs apply). Get help with the application process with an HSBC relationship manager. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.
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$0.00
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$300.00
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yes - free
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yes - free online
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no
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3.59% p.a.
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3.61% p.a.
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$150
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90.00%
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$50,000
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$7,500,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Home Value Loan
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Promoted
ME3.97% p.a.
3.99% p.a.
$1234
Product details Close detailsMEBasic Home Loan
Owner Occupier, LVR<80%, Principal and Interest
3.97% p.a.
3.99% p.a.
No fees to redraw & low variable rate. Meet a mobile banker at a time or place that suits you.
Basic Home Loan
No fees to redraw & low variable rate. Meet a mobile banker at a time or place that suits you.
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$0.00
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$350.00
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yes - free
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yes - free
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no
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3.97% p.a.
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3.99% p.a.
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$400
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80.00%
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$40,000
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-
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Basic Home Loan
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