Home loan interest rates are dropping like it’s hot
Just when you thought rates couldn’t get any lower, the Reserve Bank Board decides to cut the cash rate for the second month in a row. The cash rate is now at an all-time low of 1.00%.
How are the banks responding? Here is a list of the variable rate cuts that have been announced for owner occupiers with principal & interest repayments.
|Lender||Rate Change||Effective Date|
|AMP||-0.20% p.a.||22 July 2019|
|ANZ||-0.25% p.a.||12 July 2019|
|Athena||-0.25% p.a.||2 July 2019|
|Bank of Melbourne||-0.20% p.a.||16 July 2019|
|Bank of Queensland||-0.15% p.a.||23 July 2019|
|BankSA||-0.20% p.a.||16 July 2019|
|Bankwest||-0.19% p.a.||23 July 2019|
|Commonwealth Bank||-0.19% p.a.||23 July 2019|
|CUA||-0.17% p.a.*||10 July 2019|
|Greater Bank||-0.25% p.a.||29 July 2019|
|HSBC||-0.20% p.a.||22 July 2019|
|IMB||-0.18% p.a.||25 July 2019|
|ING||-0.20% p.a.||18 July 2019|
|Loans.com.au||-0.25% p.a.||5 July 2019|
|Macquarie Bank||-0.20% p.a.||5 July 2019|
|ME||-0.15% p.a.||23 July 2019|
|NAB||-0.19% p.a.||12 July 2019|
|RAMS||-0.20% p.a.||16 July 2019|
|St.George||-0.20% p.a.||16 July 2019|
|State Custodians||-0.25% p.a.**||24 July 2019|
|Suncorp Bank||-0.19% p.a.||19 July 2019|
|UBank||-0.25% p.a.||2 August 2019|
|Virgin Money||-0.15% p.a.||23 July 2019|
|Westpac||-0.20% p.a.||16 July 2019|
*Excluding the CUA Rate Breaker
**Includes Low Rate Home Loan, Breathe Easy, Peak Performance, Standard Variable and Specialist loans.
A rate cut is great news for borrowers! If you have a $400,000 home loan with an interest rate of 4% p.a. over a 30-year term and your lender decides to pass on the full rate cut, your new rate will be 3.75% p.a. Your repayments would decrease from $1,909.66 to $1,852.46. That’s a difference of $57.20 a month or $686.39 a year. You could use those extra savings to help pay down your mortgage!
If your lender has decided not to pass on the full rate cut to you or your interest rate for home loan is no longer competitive, it might be time to refinance with a new lender.
Check out the Credit Savvy home loan comparison service to see what home loan deals are out there today!
If you’re looking to speak to an expert, request a free appointment with an eChoice mortgage expert.