Silence from the big four as competitor banks cut fixed mortgage rates

Roisin Kelly-Goldsmith

06 Jul 2017

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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

  • Promoted

    loans.com.au

    3.03% p.a.

    3.05% p.a.

    $1234

    Product details Close details
    Smart Home Loan

    A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 3.03% p.a.

    • 3.05% p.a.

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan

  • Promoted

    UBank

    3.09% p.a.

    3.09% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    One of Australia's leading digital banks. Easy & fast to apply. Free redraw with flexible repayments. Min. 20% deposit required. Low rate and no bank fees (on variable loans). Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.^

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 3.09% p.a.

    • 3.09% p.a.

    • $0

    • 80.00%

    • $200,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Promoted

    Athena

    3.09% p.a.

    3.05% p.a.

    $1234

    Product details Close details
    Variable Home Loan

    Low rates, no fees, and automatic rate match. New-comer Athena wants you to love them and leave them. Refinance only. Minimum 20% deposit.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 3.09% p.a.

    • 3.05% p.a.

    • $0

    • 80.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Variable Home Loan

  • Promoted

    ANZ

    3.38% p.a.

    3.42% p.a.

    $1234

    Product details Close details
    Simplicity PLUS Special Offer LVR <80%

    Competitive low rate. No upfront or monthly fees. Flexibility to make extra repayments and redraw. Minimum 20% deposit required.

    • $0.00

    • $160.00

    • yes - free

    • yes

    • no

    • 3.38% p.a.

    • 3.42% p.a.

    • $0

    • 80.00%

    • $50,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Simplicity PLUS Special Offer LVR <80%

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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