Advertisement

Home loan rate wrap: Moves from bcu, State Custodians, Pacific Mortgage Group & more

Last week saw a number of increases and decreases to home loan rates across a variety of different providers, headlined by bcu producing rate cuts for both variable and fixed residential loans.

coffs coast based bcu

Image: Coffs Harbour (iStock)

Coffs Coast credit union bcu had the largest number of recorded rate changes, with rate decreases on two variable owner-occupier loans by up to five basis points and five fixed owner-occupier loans by up to 39 basis points.

The credit union also raised rates on five fixed residential interest-only products by four basis points, which means interest rates on bcu’s fixed interest-only loans are finally higher than its principal and interest equivalents by a margin of 10 basis points.

Canstar’s Group Manager of Research and Ratings Mitch Watson said while it is anticipated the RBA will hold the cash rate next week, the past week demonstrates that lenders remain active in moving home loan rates.

“Over the past few weeks we have largely observed changes on investment loans as lenders adjust their pricing to be more attractive for that segment,” Mr Watson said.

“However, in the past week the primary area of movement was on owner-occupied loans, with three lenders making a change on their home loan interest rates.

“bcu have adjusted a range of home loan interest rates for owner-occupiers. Their OMG! Home Loan interest rate reduced by 5 basis points to 3.79% p.a. (comparison rate 3.83% p.a.*) and is their sharpest rate available to owner-occupiers.”

bcu’s new owner-occupier home loan rates

Principal & interest

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

Interest-only

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

Other rate changes

Last week saw Pacific Mortgage Group increase rates on four different home loan products:

  • Variable IO Owner-Occupier (+15 basis points)
  • Residential Fixed IO two-yrs (+15 basis points)
  • Residential Fixed IO two-yrs (+15 basis points)
  • Residential Fixed IO two-yrs (+15 basis points)

State Custodians increased four of its variable home loan rates – for owner-occupiers and investors – by 10 basis points, while Nexus Mutual decreased two of its variable investment loans by the same amount.

Mr Watson said despite State Custodian and Pacific Mortgage Group’s rate hikes, both institutions are still marketing loans which are lower than 4.00% p.a. and well below the market average.

The most notable movement on investment loans last week was from Tasmanian institution Bank of Us, which made the following changes to its investment products:

  • A 50 basis point reduction to its variable Investor Topline product
  • A 40 basis point reduction to its one, two and three-year FlexiChoice fixed-investment products

Bank of Us has also removed upfront fees for its fixed and variable owner-occupier FlexiDiscount and Topline loans with LVRs of less than 90%. The FlexiDiscount product has also had its ongoing monthly fees removed for LVRs under 90%.

New rates: Owner occupier home loans (interest-only)

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

New rates: Investor home loans (p&i)

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

Home Loan Rate Changes (17/04/2018 to 23/04/2018)

The following table displays a complete summary of the home loan product changes tracked by Canstar last week.

Company Product  Old Rate New Rate Change Comparison Rate*
Owner Occupier Home Loans
Variable
bcu OMG! Variable Rate P&I 3.84 3.79 -0.05 3.84
bcu OMG! Variable Rate IO 3.9 3.89 -0.01 3.94
Pacific Mortgage Group Variable IO 3.84 3.99 0.15 3.99
State Custodians Low Rate Home Loan with Offset P&I 80% 3.54 3.64 0.1 3.67
State Custodians Low Rate Home Loan with Offset IO 3.79 3.89 0.1 3.92
Fixed
bcu Residential Fixed P&I 1 yr 4.19 3.8 -0.39 5.43
bcu Residential Fixed P&I 2 yrs 4.19 3.85 -0.34 5.33
bcu Residential Fixed P&I 3 yrs 4.29 3.9 -0.39 5.24
bcu Residential Fixed P&I 4 yrs 4.49 4.2 -0.29 5.26
bcu Residential Fixed P&I 5 yrs 4.59 4.45 -0.14 5.3
bcu Residential Fixed IO 1 yr 3.86 3.9 0.04 4.99
bcu Residential Fixed IO 2 yrs 3.91 3.95 0.04 4.89
bcu Residential Fixed IO 3 yrs 3.96 4 0.04 4.82
bcu Residential Fixed IO 4 yrs 4.26 4.3 0.04 4.84
bcu Residential Fixed IO 5 yrs 4.51 4.55 0.04 4.89
Pacific Mortgage Group Residential Fixed IO 2 yrs 4.12 4.27 0.15 3.67
Pacific Mortgage Group Residential Fixed IO 3 yrs 4.12 4.27 0.15 3.73
Pacific Mortgage Group Residential Fixed IO 4 yrs 4.62 4.77 0.15 3.95
Investor Home Loans
Variable
Bank of us Inv Topline 80% 4.69 4.19 -0.5 4.27
Nexus Mutual Platinum Standard Home Loan P&I INV 350-699k 4.65 4.55 -0.1 4.97
Nexus Mutual Platinum Standard Home Loan IO INV 350-699k 4.95 4.85 -0.1 5.26
State Custodians Low Rate Home Loan w Offset- InvP&I 80% 3.79 3.89 0.1 3.92
State Custodians Low Rate Home Loan w Offset- Inv IO 80% 4.04 4.14 0.1 4.16
Fixed
Bank of us Fixed Investment FlexiChoice 1 yr 80% 4.69 4.29 -0.4 5.53
Bank of us Fixed Investment FlexiChoice 2 yrs 80% 4.59 4.19 -0.4 5.4
Bank of us Fixed Investment FlexiChoice 3 yrs 80% 4.79 4.39 -0.4 5.35
Rates based on loans available for $400,000 at 80%LVR. *Comparison rate based on a loan amount of $150,000 over 25 years.

Share this article