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
loans.com.au3.03% p.a.
3.05% p.a.
$1234
Product details Close detailsloans.com.auSmart Home Loan
Owner Occupier, Principal & Interest
3.03% p.a.
3.05% p.a.
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.
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.
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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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3.03% p.a.
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3.05% 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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Promoted
UBank
3.09% p.a.
3.09% p.a.
$1234
Product details Close detailsUBank UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
3.09% p.a.
3.09% p.a.
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.^
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.^
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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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3.09% p.a.
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$0
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80.00%
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$200,000
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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
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Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
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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.
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
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
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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
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Read our Mozo Review to learn more about the Variable Home Loan
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Promoted
ANZ3.38% p.a.
3.42% p.a.
$1234
Product details Close detailsANZSimplicity PLUS Special Offer LVR <80%
Owner Occupier, Principal & Interest
3.38% p.a.
3.42% p.a.
Competitive low rate. No upfront or monthly fees. Flexibility to make extra repayments and redraw. Minimum 20% deposit required.
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.
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$0.00
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$160.00
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yes - free
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yes
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no
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3.38% p.a.
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3.42% p.a.
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$0
-
80.00%
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$50,000
-
-
-
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 Simplicity PLUS Special Offer LVR <80%
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