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Home loan rate wrap: Suncorp and RACQ Bank adjust rates

Ahead of today’s RBA cash rate decision, only two lenders on Canstar’s database adjusted interest rates on home loans last week, with Suncorp and RACQ Bank moving rates by up to 41 basis points.

Home loan rates roundup

Both RACQ Bank and Suncorp Bank made slight rate cuts for fixed-rate owner-occupier home loans, with rate decreases ranging in size from 6 to 20 basis points.

Larger cuts between nine to 35 basis points were made to fixed-rate investment home loans offered by the two lenders.

Suncorp Bank increased rates on two of its variable interest-only owner-occupier home loans, including its Back To Basics OO IO 150k+ loan, which it increased by 41 basis points to 4.19% (4.20% comparison rate*).

RACQ Bank’s new owner-occupier home loan rates

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

Suncorp Bank’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 (lowest-highest).

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 (lowest-highest).

Other rate changes

Both variable and fixed home loans for investors experienced some significant rate cuts in the past week.

The biggest cut came from Suncorp Bank, which reduced the rate on its Home Package Plus Variable Inv IO 90% 150k+ by 37 basis points to 4.57% (4.93% comparison rate*).

RACQ Bank lowered the rates on both its Choices Investment Fixed 5 yrs 20k+ and Investment Fixed 5 yrs loans by 35 basis points, to 4.29% and 4.39% respectively (4.61% and 5.04% comparison rates*).

Canstar’s Group Manager of Research and Ratings Mitch Watson said RACQ’s 35 basis point cut to its Choices Investment 5 year fixed loan places the product’s interest rate 40 basis points below the market average on Canstar’s database for 5-year fixed investment loans.

“The adjustment in interest rates on fixed rate terms by RACQ Bank and Suncorp is understandable due to the ongoing interest from borrowers in fixed-rate loans,” Mr Watson said.

“According to ABS Housing Finance data released for February 2018, over 14% of loans were fixed – a rate which is similar to the same time last year.”

RACQ Bank’s new investment home loan rates

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

Suncorp Bank’s new investment home loan rates

Principal & Interest

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

Interest-only

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

Summary: Home loan rate changes (24/04/2018 to 30/04/2018)

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
Suncorp Bank Back To Basics OO IO 150k+ 3.78 4.19 0.41 4.2
Suncorp Bank Home Pkg Plus Variable OO IO 90% 3.89 4.01 0.12 4.27
Fixed
RACQ Bank Choices Residential Fixed 1 yr 20k+ 3.72 3.66 -0.06 4.87
RACQ Bank Choices Residential Fixed 3 yrs 20k+ 3.89 3.79 -0.1 4.75
RACQ Bank Choices Residential Fixed 5 yrs 20k+ 4.19 4.09 -0.1 4.76
RACQ Bank Residential Fixed 1 yr 3.82 3.76 -0.06 4.91
RACQ Bank Residential Fixed 3 yrs 3.99 3.89 -0.1 4.74
RACQ Bank Residential Fixed 5 yrs 4.29 4.19 -0.1 4.7
Suncorp Bank Home Package Plus Owner Occupied Fixed P&I 2 yrs 150k+ 3.89 3.79 -0.1 4.71
Suncorp Bank Home Package Plus Owner Occupied Fixed P&I 3 yrs 150k+ 3.99 3.79 -0.2 4.69
Suncorp Bank Owner Occupied Fixed IO 2 yrs 4.04 3.94 -0.1 5.44
Suncorp Bank Owner Occupied Fixed IO 3 yrs 4.14 3.94 -0.2 5.31
Investor Home Loans
Variable
Suncorp Bank Home Package Plus Variable Inv IO 90% 150k+ 4.94 4.57 -0.37 4.93
Fixed
RACQ Bank Choices Investment Fixed 1 yr 20k+ 4.14 3.99 -0.15 4.55
RACQ Bank Choices Investment Fixed 2 yrs 20k+ 4.14 4.05 -0.09 4.55
RACQ Bank Choices Investment Fixed 3 yrs 20k+ 4.24 4.09 -0.15 4.54
RACQ Bank Choices Investment Fixed 5 yrs 20k+ 4.64 4.29 -0.35 4.61
RACQ Bank Investment Fixed 1 yr 4.24 4.09 -0.15 5.36
RACQ Bank Investment Fixed 2 yrs 4.24 4.15 -0.09 5.25
RACQ Bank Investment Fixed 3 yrs 4.34 4.19 -0.15 5.15
RACQ Bank Investment Fixed 5 yrs 4.74 4.39 -0.35 5.04
Suncorp Bank Home Package Plus Investment Fixed IO 2 yrs 150k+ 4.29 4.39 0.1 5.47
Suncorp Bank Home Package Plus Investment Fixed IO 3 yrs 150k+ 4.29 4.49 0.2 5.39
Suncorp Bank Home Package Plus Investment Fixed P&I 2 yrs 150k+ 4.29 3.99 -0.3 5.47
Suncorp Bank Home Package Plus Investment Fixed P&I 3 yrs 150k+ 4.29 4.09 -0.2 5.39
Suncorp Bank Investment Fixed IO 2 yrs 4.44 4.54 0.1 5.91
Suncorp Bank Investment Fixed IO 3 yrs 4.44 4.64 0.2 5.77
Suncorp Bank Investment Fixed P&I 2 yrs 4.44 4.14 -0.3 5.91
Suncorp Bank Investment Fixed P&I 3 yrs 4.44 4.24 -0.2 5.77
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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