Home loan rate wrap: Bendigo Bank, BOQ & others adjust rates

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AutoInsuranceMM.Info – Low income insurance – Home loan rate wrap: Bendigo Bank, BOQ & others adjust rates

Last week Bendigo Bank was among the three lenders to cut interest rates on a range of investment home loans, while BOQ and SCU were the only providers on Canstar’s database to reduce rates for owner-occupiers.

Image: NilsBV (iStock)

Investment home loan rates continue to drop

Bendigo Bank, Gateway Bank and Service One Alliance Bank cut investment home loan rates by up to 30 basis points across a range of variable and fixed products last week.

Bendigo’s largest rate cut was to its Connect Package Variable Investment 250-499k P&I (principal and interest) loan, reducing the advertised rate by 30 basis points from 4.86% to 4.56% (4.85% comparison rate*).

Sydney-based credit union Gateway Bank cut the P&I and interest-only (IO) rates on its Low Rate Essentials and 2-year fixed Premium Investment products, while Service One cut P&I and interest-only (IO) rates on its Investment Standard Variable product.

New investment home loan rates

Principal & interest

Rates based on variable & fixed investment home loans available for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by provider name (alphabetically).

Interest-only

Rates based on variable & fixed investment home loans available for a loan amount of $350,000 at 80% LVR (interest only). Table sorted by provider name (alphabetically).

Mixed rate movements for owner occupiers

Bank of Queesland’s (BOQ) 20 basis point rate cut on its ‘Economy’ home loan was the only variable owner-occupier home loan rate movement last week.

Meanwhile, SCU cut interest rates on its ‘My Life Residential Fixed 2 yrs’ loan by 16 basis points from 3.85% to 3.69% (4.04% comparison rate*).

Western Australian mutual bank P&N raised rates across its P&I and IO Residential Fixed fixed home loans, with a 30 basis point hike for its one-year fixed products and a 10 basis point hike for all the other term lengths.

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 provider name (alphabetically).

All home loan rate movements last week

Home Loan Product Level Changes between 15/05/2018 to 21/05/2018 (%)
Company Product  Old Rate New Rate Change Comparison Rate*
Owner Occupier Home Loans
Variable
BOQ Economy 3.79 3.59 -0.2 3.75
Fixed
P&N Bank Residential Fixed IO 1 yr 80% 3.59 3.89 0.3 4.7
P&N Bank Residential Fixed IO 2 yrs 80% 3.89 3.99 0.1 4.65
P&N Bank Residential Fixed IO 3 yrs 80% 4.09 4.19 0.1 4.65
P&N Bank Residential Fixed IO 4 yrs 80% 4.39 4.49 0.1 4.72
P&N Bank Residential Fixed IO 5 yrs 80% 4.59 4.69 0.1 4.79
P&N Bank Residential Fixed PI 1 yr 80% 3.59 3.89 0.3 4.7
P&N Bank Residential Fixed PI 2 yrs 80% 3.89 3.99 0.1 4.65
P&N Bank Residential Fixed PI 3 yrs 80% 4.09 4.19 0.1 4.65
P&N Bank Residential Fixed PI 4 yrs 80% 4.39 4.49 0.1 4.72
P&N Bank Residential Fixed PI 5 yrs 80% 4.59 4.69 0.1 4.79
SCU My Life Residential Fixed 2 yrs 150k+ 3.85 3.69 -0.16 4.04
Investor Home Loans
Variable
Bendigo Bank Basic Variable Investment IO 5.21 5.06 -0.15 5.31
Bendigo Bank Basic Variable Investment PI 4.86 4.61 -0.25 4.79
Bendigo Bank Connect Package Variable Investment 250-499k P&I 4.86 4.56 -0.3 4.85
Bendigo Bank Connect Residential Investment Variable IO 250-499k 5.16 5.01 -0.15 5.3
Bendigo Bank Residential Investment Variable IO 250-499k 5.51 5.36 -0.15 5.61
Bendigo Bank Residential Investment Variable PI 250-499k 5.16 4.91 -0.25 5.09
Gateway Bank Inv Low Rate Essentials 4.12 3.92 -0.2 3.94
Gateway Bank Inv Low Rate Essentials IO 4.42 4.17 -0.25 4.19
SERVICE ONE Alliance Bank Investment Standard Variable P&I 250-499k 4.9 4.65 -0.25 4.8
SERVICE ONE Alliance Bank Investment Standard Variable IO 250-499k 5.25 5.1 -0.15 5.24
Fixed
Gateway Bank Premium Investment Fixed 2 yrs 150k+ 4.25 4.04 -0.21 4.96
Gateway Bank Premium Investment Fixed 2 yrs IO 150k+ 4.55 4.29 -0.26 5.38
Rates based on loans available for $400,000 at 80%LVR. *Comparison rate based on a loan amount of $150,000 over 25 years.