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Home loan rate roundup: ING, Heritage Bank, Newcastle Permanent cut rates

Last week’s home loan interest rate market was dominated by a series of cuts to fixed and variable investment rates from five different providers, as well as cuts to fixed owner-occupier rates from one provider.

home loan rate roundup

ING headlined the week with competitive rate cuts of up to 42 basis points across its range of fixed rate owner-occupier home loans, resulting in some of the lowest advertised fixed rates on Canstar’s database.

Among these was ING’s Orange Advantage Residential Fixed 5 yrs 150k+ which was reduced by 21 basis points to 3.98% (4.14%* comparison rate), making it the lowest advertised five-year fixed rate on Canstar’s database (at the time of writing).

Canstar’s Group Manager of Research and Ratings Mitch Watson said this is good news for owner occupiers.

“With the official cash rate stalled at a record low for almost two years, ING’s four and five-year fixed rates are likely to be attractive to borrowers who may have given up on hoping for further cuts,” Mr Watson said.

Top 5 5-year fixed residential interest rates on Canstar

Rates based on five-year fixed owner-occupier home loans available for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by current rate.

Loans.com.au was the only provider on Canstar’s database to increase rates last week, with 12 basis point increases to its Essentials – Owners Occ – PI and Offset Variable-Owner Occ <80% P&I variable rate loans for owner occupiers to 3.64% (3.67%* comparison rate) and 3.72% (3.75%* comparison rate) respectively.

Loans.com.au’s new variable home loan rates

Rates based on variable owner-occupier home loans available for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by current rate.

Discounts for investors continue

Mr Watson said last week’s movements showed further discounting in the investor space.

“Both principal and interest (P&I) and interest-only investor home loans were made more appealing to investors, with Heritage Bank, Newcastle Permanent and TicToc decreasing variable rates and CUA and TicToc decreasing fixed rates,” he said.

“Competition in this space has picked up, and with more rates starting with a ‘3’ available to investors, now could be a good time for those looking to refinance their investment loans, especially those looking to lock in their rate.”

The biggest investor rate cuts came from CUA, which reduced the fixed interest rate by 35 basis points on both its 3 Year Fixed Investor Interest Only and 3 Year Premium Fixed Investor IO home loans to 4.14% (5.22%* comparison rate) and 4.26% (5.25%* comparison rate) respectively.

CUA’s new fixed investment home loan rates

Interest-only

Rates based on fixed investor home loans available for a loan amount of $350,000 at 80% LVR (interest only). Table sorted by current rate.

Principal & Interest

Rates based on fixed investor home loans available for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by current rate.

Home loan rate movement summary

The table below summarises each of last week’s home loan rate changes.

Home Loan Product Level Changes between 10/04/2018 to 16/04/2018 (%)
Company Product Old Rate New Rate Change Comparison Rate*
Owner Occupier Home Loans
Variable
loans.com.au Essentials – Owner Occ – PI 3.52 3.64 0.12 3.67
loans.com.au Offset Variable-Owner Occ <80% P&I 3.6 3.72 0.12 3.75
Fixed
ING Residential Fixed 1 yr 3.79 3.68 -0.11 3.82
ING Residential Fixed 2 yrs 3.89 3.82 -0.07 3.83
ING Residential Fixed 3 yrs 3.99 3.93 -0.06 3.86
ING Residential Fixed 4 yrs 4.44 4.02 -0.42 3.91
ING Residential Fixed 5 yrs 4.29 4.08 -0.21 3.95
ING Orange Advantage Residential Fixed 1 yr 150k+ 3.69 3.58 -0.11 4.01
ING Orange Advantage Residential Fixed 2 yrs 150k+ 3.79 3.72 -0.07 4.02
ING Orange Advantage Residential Fixed 3 yrs 150k+ 3.89 3.83 -0.06 4.06
ING Orange Advantage Residential Fixed 4 yrs 150k+ 4.34 3.92 -0.42 4.1
ING Orange Advantage Residential Fixed 5 yrs 150k+ 4.19 3.98 -0.21 4.14
Investor Home Loans
Variable
Heritage Bank Home Advantage Investment Variable P&I 250-699k 4.39 4.14 -0.25 4.49
Heritage Bank Investment Discount Variable IO 80% 4.64 4.49 -0.15 4.5
Newcastle Permanent Premium Plus Package Investment Premium Variable P&I  80% 150-499k 4.47 4.17 -0.3 4.56
Newcastle Permanent Premium Plus Package Investment Premium Variable IO 150-499k 4.92 4.62 -0.3 5.04
TicToc Home Loans Variable Invest P&I 3.99 3.79 -0.2 3.8
TicToc Home Loans Investor IO Variable 4.59 4.19 -0.4 4.2
Fixed
CUA 3 Year Fixed Investor Interest Only 4.49 4.14 -0.35 5.22
CUA 3 Year Fixed Investor P&I 4.14 3.99 -0.15 5.18
CUA 3 Year Premium Fixed Investor IO 4.61 4.26 -0.35 5.25
CUA 3 Year Premium Fixed Investor P&I 4.26 4.11 -0.15 5.21
TicToc Home Loans Investment fixed IO 2 yrs 4.34 4.29 -0.05 4.54
TicToc Home Loans Investment fixed P&I 2 yrs 4.29 4.19 -0.1 3.87
Rates based on loans available for $400,000 at 80%LVR. *Comparison rate based on a loan amount of $150,000 over 25 years.

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