Silence from the big four as competitor banks cut fixed mortgage rates
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
3.34% p.a.
3.34% p.a.
$1234
Product details Close detailsUBank UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
3.34% p.a.
3.34% p.a.
Enjoy a low rate & no bank fees (on variable loans) from one of Australia's leading digital banks. Easy & fast to apply, you'll get free redraw with flexible repayments. Min. 20% deposit required. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.
UHomeLoan - Discount Offer
Enjoy a low rate & no bank fees (on variable loans) from one of Australia's leading digital banks. Easy & fast to apply, you'll get free redraw with flexible repayments. Min. 20% deposit required. 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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3.34% p.a.
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3.34% 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
Hunter United3.29% p.a.
3.39% p.a.
$1234
Product details Close detailsHunter UnitedNo Regrets Home Loan $400k+
Owner Occupied, LVR<90%, Principal & Interest
3.29% p.a.
3.39% p.a.
Hunter United No Regrets Home Loan with only 10% deposit/equity. Includes 100% Offset and Redraw facilities. Available for loans over $400k. Loan approvals can be done within 24 hours. No annual fee.
No Regrets Home Loan $400k+
Hunter United No Regrets Home Loan with only 10% deposit/equity. Includes 100% Offset and Redraw facilities. Available for loans over $400k. Loan approvals can be done within 24 hours. No annual fee.
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$8.00 monthly
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$80.00
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yes
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yes - 1st redraw per month free
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yes
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3.29% p.a.
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3.39% p.a.
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$0
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90.00%
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$400,000
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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 No Regrets Home Loan $400k+
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Promoted
Athena3.09% p.a.
3.05% p.a.
$1234
Product details Close detailsAthenaVariable Home Loan
Owner Occupier, Principal & Interest
3.09% p.a.
3.05% p.a.
With low rates, no fees, and automatic rate match, new-comer Athena wants you to love them and leave them. Refinance only. Minimum 20% deposit.
Variable Home Loan
With low rates, no fees, and automatic rate match, new-comer Athena wants you to love them and leave them. Refinance only. Minimum 20% deposit.
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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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3.09% p.a.
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3.05% p.a.
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$0
-
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 3.47% p.a.
3.48% p.a.
$1234
Product details Close detailsHSBC Discounted Home Value Loan
Owner Occupier, Principal & Interest
3.47% p.a.
3.48% p.a.
As of 22nd July HSBC will be reducing this rate to 3.27% p.a.* (3.28% p.a. comparison rate^) so enquire now and be one of the first to make the most of this great rate. Enjoy unlimited free extra repayments and no ongoing service fees when you apply by 31 July (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
As of 22nd July HSBC will be reducing this rate to 3.27% p.a.* (3.28% p.a. comparison rate^) so enquire now and be one of the first to make the most of this great rate. Enjoy unlimited free extra repayments and no ongoing service fees when you apply by 31 July (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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3.47% p.a.
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3.48% 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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