UBank, Bendigo Bank among latest lenders to announce cuts

UBank customers who logged onto the UBank app over the weekend were greeted by some pleasant news: the online bank has opted to pass on the RBA’s cut in full to its variable home loan customers.

The decision will see rates for UBank’s popular UHomeLoan drop as low as 3.09% p.a. (3.09% p.a. comparison rate*). Both new and existing customers will be able to enjoy the new rates, but unfortunately, there will be a bit of a wait — the changes will come into effect on 2 August.

Once in place, owner occupiers paying off a $400,000 UHomeLoan (Discount Offer) over 30 years can expect to save $55 each month, or $660 over a year thanks to the new rate.

Bendigo Bank, MyState Bank reduce rates by 0.20%

Decisions from other lenders in the past few days have been a bit of a mixed bag. Bendigo Bank announced it will be reducing rates by 0.20% for owner occupiers and 0.15% for investors. The changes will take effect on 29 July, and will apply to new and existing customers.

Bendigo Bank Managing Director, Marnie Baker said the decision aims to balance the interests of a variety of stakeholders, and uphold “the strength of our national network which supports the prosperity of communities across the country.”

Meanwhile, MyState Bank also revealed it will be decreasing variable rates by 0.20%. The new rates will be available to new customers on 15 July, while existing customers will have to wait until 29 July for relief to come their way.

Who else has made cuts?

Bank Australia also made moves over the weekend, announcing it will be reducing variable rates by 0.16%. The changes will take effect on 22 July, and will apply to all owner occupiers and investors.

We saw a similar move from Bank of Queensland and Virgin Money, who both announced plans to reduce variable rates for new and existing customers by 0.15% on 23 July. 

Decisions like these aren’t likely to be appreciated by home loan customers, but will come as welcome news to savers. After all, when banks make reductions to home loan rates in the wake of an RBA decision, cuts to savings accounts and term deposits usually follow.

As Lyn McGrath, Group Executive of Retail Banking at BOQ put it, “With interest rates now at historical lows, it is critical that we balance our ongoing support for borrowers with those of our depositors.” 

Nonetheless, if you’re unsatisfied with your bank’s decision, or believe the home loan rates on offer elsewhere are more worthy of your attention, be sure to head to our variable rate home loan comparison page, or check out some of the options below.

Home loan comparisons on Mozo

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Last updated 16 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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* 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 $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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