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
- UBank
3.59% p.a.
3.59% p.a.
$1234
Product details Close detailsUBankUHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
3.59% p.a.
3.59% p.a.
A low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply. Choose between flexible repayments and make extra repayments for free on a variable rate home loan.
UHomeLoan - Discount Offer
A low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply. Choose between flexible repayments and make extra repayments for free on a variable rate home loan.
-
$0.00
-
$0.00
-
yes - free
-
yes
-
no
-
3.59% p.a.
-
3.59% p.a.
-
$0
-
80.00%
-
$200,000
-
$699,999
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
-
- HSBC
3.59% p.a.
3.61% p.a.
$1234
Product details Close detailsHSBCDiscounted Home Value Loan
Owner Occupier, Principal & Interest
3.59% p.a.
3.61% p.a.
Discounted rate for the life of the loan. A relationship manager to help you through the application process.
Discounted Home Value Loan
Discounted rate for the life of the loan. A relationship manager to help you through the application process.
-
$0.00
-
$300.00
-
yes - free
-
yes - free online
-
no
-
3.59% p.a.
-
3.61% p.a.
-
$150
-
90.00%
-
$50,000
-
$7,500,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Home Value Loan
-
- Newcastle Permanent
3.89% p.a.
4.29% p.a.
$1234
Product details Close detailsNewcastle Permanent Discounted Variable Home Loan Premium Plus Package
Owner Occupier, Principal & Interest
3.89% p.a.
4.29% p.a.
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018.^
Discounted Variable Home Loan Premium Plus Package
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018.^
-
$395.00 yearly
-
$0.00
-
yes - free
-
yes - free
-
yes
-
3.89% p.a.
-
4.29% p.a.
-
$0
-
90.00%
-
$150,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Variable Home Loan Premium Plus Package
-
- Hunter United
4.19% p.a.
4.19% p.a.
$1234
Product details Close detailsHunter UnitedInterest Only Owner Occupier Home Loan
4.19% p.a.
4.19% p.a.
Interest Only could offer the relief you need. Get fast approval on a 2-year interest only owner occupied home loan of $300,000 or more.
Interest Only Owner Occupier Home Loan
Interest Only could offer the relief you need. Get fast approval on a 2-year interest only owner occupied home loan of $300,000 or more.
-
$0.00
-
$80.00
-
yes
-
yes - 1st redraw per month free
-
no
-
4.19% p.a.
-
4.19% p.a.
-
$0
-
80.00%
-
$300,000
-
-
-
Variable
-
Interest Only
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Interest Only Owner Occupier Home Loan
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