On 16th October ME announced a decrease to its 2-year fixed home loan rate to 3.89% p.a., the lowest rate it has ever offered. You can compare 2 year fixed home loan rates here. And on the 19th October, Auswide Bank announced a cut in variable home loan rate to 3.98%.
The discounted rate is available on new ‘owner-occupied’ principal and interest home loans of $150,000 or more with an LVR of equal to or less than 80%. A discounted rate of 4.19% is also available for owner occupier home loans over 80% up to 90% LVR.
Managing Director, Martin Barrett, said the timing of the Auswide Bank’s rate announcement is no accident.
“Westpac Bank’s increase was totally unexpected by their customers. I’d expect that they are pretty upset right now -especially given the size of Westpac’s annual profit. If other banks follow suit, I think there will be a whole lot more disgruntled borrowers especially given the ‘big four’ own about 80% of home loans in Australia. Now is the time for customers of the big four banks to stop being taken for granted and move to a bank that appreciates its customers.”
Other lenders that have decreased some home loan rates over the past week include Aussie Home Loans, Community First Credit Union, Heritage Bank and Yellow Brick Road.
Highest, lowest, average home loan interest rates
Currently on Canstar’s database, the highest, lowest and average home loan interest rates are as follows:
|Table: Home Loan Market – Snapshot of the current market (Monday 26th October)|
|Basic Variable||Standard Variable||Package Variable||2 Year Fixed||3 Year Fixed||5 Year Fixed|
|Source: www.canstar.com.au, the search results do not include all home loan providers, and may not include all features relevant to you.|
As the table above shows, there is currently a more than 2% difference between highest and lowest variable rates on the Canstar database, so ensure that you compare your home loan rate to check that you’re not paying too much. Use our Home Loan Comparison Calculator to get an idea of how much you could save by switching loans.