Four lenders cut rates, one hikes
It was a relatively quiet week for home loan rate changes in Australia, with four lenders pricing down and one bank increasing rates, financial comparison website RateCity.com.au has reported.
Suncorp made notable cuts, reducing its variable home loan rates by up to 0.25 percentage points and its fixed rates by up to 0.70 percentage points. The largest reductions were targeted at investor loans.
Qudos Bank lowered its three-year fixed and variable rates, including a cut to its No Frills variable loan, which now stands at 5.94 per cent for borrowers with a deposit of at least 30%.
SWS Bank also made adjustments, dropping its one-year fixed rate to 5.89%, one of the most competitive rates currently listed on the RateCity.com.au database. Additionally, the bank retained the market’s lowest rate of 4.99%, fixed for three years.
Not all changes were decreases, however. Bank Australia made mixed adjustments to its rates. The lender reduced its green variable home loans by up to 0.60 percentage points and one three-year fixed rate. At the same time, it raised other fixed rates by as much as 0.30 percentage points.
Abal Bank continues to offer the lowest variable rate at 5.75%. Close competitors include Police Bank, Bank of Heritage Isle, and Border Bank, all advertising rates of 5.84%. Bank of China follows at 5.88%, with The Mutual Bank and RACQ offering 5.89%.
In the fixed rate category, the most competitive options vary by term. Community First leads with a one-year fixed rate of 5.74%, while Easy Street offers the lowest two-year rate at 5.49%. For three-year terms, SWS Bank stands out with a rate of 4.99%. Longer terms, such as four and five years, are priced at 5.59%, with Newcastle Permanent and RACQ among the top providers..
RateCity’s weekly interest rate update also showed the lowest advertised rates among Australia’s big four banks.
For variable rates, Commonwealth Bank (CBA) offers 6.15%, while Westpac lists 6.44%, with a two-year initial rate before a 0.4 percentage point increase. National Australia Bank (NAB) also advertises 6.44%, and ANZ offers the most competitive rate at 6.09%, though it is restricted to refinancing.
In the fixed rate category, CBA’s one-year fixed rate is 6.39%, while Westpac leads at 6.09%, followed by NAB at 6.29% and ANZ at 6.14%. For two-year terms, ANZ has the lowest rate at 5.74%, with Westpac offering 5.89%, CBA at 6.29%, and NAB at 6.04%.
For three-year fixed rates, CBA, Westpac, and NAB advertise 5.89%, with ANZ again offering the lowest rate at 5.74%. On four-year fixed terms, CBA lists 6.29%, while Westpac and ANZ share a rate of 5.89%, and NAB offers 6.24%. For five-year fixed rates, CBA leads at 6.69%, with Westpac at 5.89%, NAB at 6.29%, and ANZ at 5.99%.
“Hopes for a future cash rate cut improved this week, with the Reserve Bank meeting on Tuesday for its final rate decision for the year. At the meeting, the board decided to leave the cash rate unchanged at 4.35%, but gave its best indication yet of rate relief on the horizon,” said Laine Gordon (pictured above), money editor at RateCity.com.au.
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