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

Roisin Kelly-Goldsmith

06 Jul 2017

redactor/hero-images/53/fixed-rates_content.jpg

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. Advertiser disclosure.

  • loans.com.au

    2.48% p.a.

    2.50% p.a.

    $1234

    Product details Close details
    Smart Home Loan 80

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ You'll need to be borrowing $1 million or less and have at least a 20% deposit required.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • Optional - with 0.10% additional interest

    • $520

    • 2.48% p.a.

    • 2.50% 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 80

  • HSBC

    p.a.

    2.95% p.a.

    $1234

    Product details Close details
    Fixed Rate Home Loan

    Have the security of a fixed rate for 2 years with the option to split with one of the HSBC variable Home Loans. No ongoing monthly service fees or annual fees. Mozo Experts Choice Fixed Home Loan 2020^

    • $0.00

    • $300.00

    • yes - free up to $10,000 p.a.

    • no

    • no

    • $0

    • p.a.

    • 2.95% p.a.

    • $0

    • 80.00%

    • $50,000

    • $7,500,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Fixed Rate Home Loan

  • Athena

    2.34% p.a.

    2.34% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.34% p.a.

    • 2.34% p.a.

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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

  • UBank

    2.49% p.a.

    2.49% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.49% p.a.

    • 2.49% p.a.

    • $0

    • 80.00%

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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

^See information about the Mozo Experts Choice Home loans Awards