Lowest big bank mortgage rates on offer now


It is no longer a question of “if” mortgage rates will drop below 2%, but “when”: this is the prediction of a financial expert, after the announcement that one of the four big banks had reduced its rates to match its closest rival. We are currently looking at the lowest mortgage rates from major banks in Canstar’s database.




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The National Australia Bank cut a number of its home loans by 0.1 to 0.15 percentage points on June 18, including reducing its special homeowner-occupied variable rate principal and interest offer to 2 , 69% (comparison rate 2.69% The new rate makes it an equal winner in the ‘lowest floating rate’ race between the Big Four banks at the time of writing, matching Westpac’s lowest variable bid (2.69% , comparison rate 2.70%). (See the table below for all of the most recent NAB changes, as well as a table of the four lowest fares on Canstar’s database.)




However, it could be the home owners who are the real winners. Canstar financial expert Steve Mickenbecker said this “can only mean happy days” for borrowers who get through COVID-19 financially intact. As the rates of the Big Four banks tend to go down – the NAB variable base rate is the lowest offered by the bank to date – the non-bank lender Reduce Home Loans has the lowest variable rate on record in Canstar’s database of over 4,000 home loans. HSBC has the lowest overall rate in Canstar’s database (2.09%, comparison rate 2.98%) for its 2-year fixed-interest residential loan (LVR 80%).




“It’s starting to look like ‘when’ rates go over 2%, not ‘if’ they will,” Mickenbecker said.




“If variable rates were as low as 1.99%, the possible savings on a variable rate loan of $ 400,000 at the current average homeowner rate (based on Canstar data) of 3.47% could be a little over $ 300 per month, or over $ 3,700 per month. year.”








Mr Mickenbecker said lenders were able to continue cutting mortgage rates due to “record low wholesale finance rates” – which meant it was cheaper for them than ever to find the money. they needed to run their business and also provide loans to their clients. This is due, in part, to at a record official cash rate It is should not change for a while, according to Reserve Bank of Australia (RBA) Governor Philip Lowe and the RBA’s “quantitative easing” measures.




The minutes of the last RBA board meeting (June 2020) indicated that due to the low interest rate environment, many people were looking for a better deal on their home loans. And this despite the slowdown in the economy – including the real estate market – due to the COVID-19 crisis.




“Loan refinancing remained high (in April) as borrowers sought to take advantage of competition among lenders for low credit risk borrowers,” the minutes said.




Mr Mickenbecker said it was interesting to see how the high number of people looking to refinance were impacting the home loan market.




“NAB’s 0.10 percentage point cuts on a range of fixed rates of principal and one- and two-year interest confirm that fixed-rate loans remain the instrument of choice for most banks, because they are vying for a share of booming refinancing demand in an otherwise flat loan market, “he said.








What are the lowest mortgage rates offered by the big four banks?




Lowest variable and fixed rate home loans from major banks ($ 400,000, homeowner loans in any LVR)

Lender

Product Rate Comparison rate *

Variable

NAB Base variable rate P&I special 2.69% 2.69%
Westpac Special offer Flexi First Option P&I 70% 2.69% 2.70%
ANZ Simplicity Plus P&I special offer 2.72% 2.76%
Commonwealth Bank Additional P&I 80% 2.79% 2.80%

1 year fixed

Westpac Fixed options Premier Advantage P&I 1 year 70% 150k + 2.19% 3.52%
Commonwealth Bank Fixed P&I Residential Wealth Package 1 year 150k + 95% 2.29% 4.13%
NAB Custom Choice Fixed Fixed – P&I 1 year 150k + 95% 2.29% 4.17%
ANZ Breakfree Residential Fixed 1 year 150k + 90% 2.39% 4.16%

2 years fixed

Westpac Premier Advantage Fixed options P&I 2 years 70% 150k + 2.19% 3.43%
NAB Bespoke Choice Fixed Fixed – P&I 2 year package 150k + 95% 2.19% 4.02%
Commonwealth Bank Fixed P&I Residential Wealth Package 2 years 150k + 95% 2.29% 3.99%
ANZ Breakfree Residential Fixed 2 years 150k + 90% 2.29% 4.02%
Source: www.canstar.com.au – 06/29/2020. Based on homeowner home loans available for a loan amount of $ 400,000 and principal and interest repayments; excluding introductory and first purchase loans only. * Comparison rate calculated on the basis of a loan of $ 150,000 repaid over 25 years. Read it Comparison rate warning. Table sorted in ascending order by rate, followed by the compare rate.




NAB Interest Rate Changes – Effective 06/18/2020

Owner Occupants
Product Old rate New rate Comparison rate Switch
Base variable rate P&I special 2.84% 2.69% 2.69% -0.15%
1 year fixed tailor-made P&I 2.49% 2.39% 4.45% -0.10%
2-year fixed tailor-made P&I 2.39% 2.29% 4.25% -0.10%
Custom Fixed P&I Choice Package 1 year 150k + 2.39% 2.29% 4.17% -0.10%
Fixed P&I Choice Package 2 years 150k + 2.29% 2.19% 4.02% -0.10%
Investors
Product Old rate New rate Comparison rate Switch
1 year fixed tailor-made P&I investment 2.79% 2.69% 5.02% -0.10%
2-year fixed tailor-made P&I investment 2.69% 2.59% 4.78% -0.10%
Investment Choice Package P&I fixed tailor-made 1 year 150k + 2.69% 2.59% 4.73% -0.10%
Investment Choice Package P&I fixed tailor-made 2 years 150k + 2.59% 2.49% 4.55% -0.10%




Source: National Australia Bank / Canstar.com.au








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