Each of Teachers Mutual Bank’s fixed investment products, from one-year to five-year, experienced this cut. UniBank, which is a division of Teachers Mutual Bank, carried out the same rate cuts to all of its fixed investment products.
Both providers also cut the variable investment product, the Flexi Choice Investor Home Loan, by 20 basis points.
Canstar’s Group Manager of Research and Ratings, Mitch Watson, said these changes move both Teachers Mutual Bank and UniBank’s investment fixed rates below their respective market averages.
Teachers Mutual Bank & UniBank’s new investment home loan rates
Rates based on fixed investment home loans available in NSW for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by current rate (lowest-highest).
Rates based on variable investment home loans available in NSW for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by current rate (lowest-highest).
MyState increases rates on owner-occupier loans
There were a total of five different institutions that either increased or decreased home loan interest rates last week: UniBank, Teachers Mutual Bank, Summerland Credit Union and The Rock.
Summerland Credit Union and The Rock only made one change each:
- Summerland Credit Union decreased the rate on its Standard Fixed 3 year home loan by 20 basis points;
- The Rock increased the rate on its Basic Investment Variable Home Loan (interest-only) by 20 basis points
MyState meanwhile made five product changes. Most notably, it increased interest rates on three of its variable owner occupier loans by 20 basis points.
“We have observed that across the market, lenders are adjusting their pricing between the payment option borrowers choose,” Mr Watson said.
“They are offering lower interest rates on principal and interest repayments as an incentive for consumers to choose this option over the relatively more expensive interest rate on an interest only loan. The movement by MyState of increasing their loan interest rates for interest only by 20 basis points is a reflection of this.”
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 (lowest-highest).
Summary: Home loan rate changes (01/05/2018 to 08/05/2018)
The following table displays a complete summary of the home loan product changes tracked by Canstar last week.
|Home Loan Product Level Changes between 01/05/2018 to 08/05/2018 (%)|
|Company||Product||Old Rate||New Rate||Change||Comparison Rate*|
|Owner Occupier Home Loans|
|MyState||Basic Variable Home Loan IO||3.99||4.19||0.2||4.22|
|MyState||Special Residential Home Loan IO||4.19||4.39||0.2||4.44|
|MyState||Standard Variable IO||5.43||5.63||0.2||5.7|
|Summerland Credit Union||Standard Fixed 3 yrs||4.09||3.89||-0.2||4.88|
|Investor Home Loans|
|MyState||Inv Standard Variable IO||5.43||5.63||0.2||5.7|
|MyState||Special Residential Inv Loan IO||4.69||4.89||0.2||4.94|
|Teachers Mutual Bank||Inv Flexi Choice||5.36||5.16||-0.2||5.21|
|The Rock||Inv Basic Variable Home Loan IO||4.49||4.69||0.2||4.72|
|UniBank||Inv Flexi Choice||5.36||5.16||-0.2||5.21|
|Teachers Mutual Bank||Inv Fixed Rate 1 yr||4.34||4.14||-0.2||5.11|
|Teachers Mutual Bank||Inv Fixed Rate 2 yrs||4.43||4.23||-0.2||5.04|
|Teachers Mutual Bank||Inv Fixed Rate 3 yrs||4.6||4.4||-0.2||5.01|
|Teachers Mutual Bank||Inv Fixed Rate 4 yrs||4.88||4.68||-0.2||5.04|
|Teachers Mutual Bank||Inv Fixed Rate 5 yrs||5.01||4.81||-0.2||5.06|
|UniBank||Inv Fixed Rate 1 yr||4.34||4.14||-0.2||5.11|
|UniBank||Inv Fixed Rate 2 yrs||4.43||4.23||-0.2||5.04|
|UniBank||Inv Fixed Rate 3 yrs||4.6||4.4||-0.2||5.01|
|UniBank||Inv Fixed Rate 4 yrs||4.88||4.68||-0.2||5.04|
|UniBank||Inv Fixed Rate 5 yrs||5.01||4.81||-0.2||5.06|
|Rates based on loans available for $400,000 at 80%LVR. *Comparison rate based on a loan amount of $150,000 over 25 years.|