Fixed Rate Home Loans Are Falling

Despite the RBA leaving variable interest rates on hold for July, fixed rate home loans and investment loans continue to fall.

Below is just a sample of the types of rates you may find in the Australian mortgage market. Please note that these loans may not suit all borrowers so it is imperative that you contact your mortgage advisor to see if these loans suit your lending needs.

1  Year Fixed Rate     4.69%     CPR 5.13%

2  Year Fixed Rate     4.79%     CPR 5.31%

3  Year Fixed Rate     4.68%     CPR 5.31%

4  Year Fixed Rate     5.21%     CPR 5.13%

5  Year Fixed Rate     5.29%     CPR 5.45%

7  Year Fixed Rate     7.30%     CPR 5.26%

10 Year Fixed Rate     7.30%     CPR 5.26%

For more information on fixed rate loans and to see if they suit your lending needs feel free to submit a mortgage quote by clicking the button below.


Australian Interest Rates on Hold

The Reserve Bank of Australia announced this week that interest rates will remain at 2.75% for the second month running.

The RBA stated that they want to see how previous interest rate cuts have stimulated the economy. Also, the Australian dollar has fallen over 10% in the last month which added economic benefit for the Australian economy. Economists believe that interest rates are likely to drop at least once more before Christmas.

I hear no inside information about the banks changing their variable rate home loans but there are a number of fixed rate loans that have fallen below 5.00%  which is a very attractive rate if you are looking to fix your home loan. I will update the fixed rate products in another post.

In the mean time if you require assistance from a mortgage adviser from any of the major banks plus 40 other lenders feel free to submit a mortgage quote.


ANZ cuts Variable Rates by 0.27%

ANZ decided to decrease their variable interest rate for home and investment loans by 0.27%  which is .02% more than the other banks.

I see on twitter and in news reports praising the bank for being generous. Let us not forget the bank has increased its margin by 0.49% since November 2010. So the 0.02% is nothing compared to what they have taken.

This is not to say the NAB, Westpac, Commonwealth Bank and many other lenders are any better as they have all been guilty of not passing on full rate cuts or increasing interest rates.

It is always best to check with a qualified mortgage consultant to see if you are getting the best deal on your mortgage by submitting a mortgage enquiry.


Variable Interest Rates Down By 0.25% – ANZ CBA NAB Westpac ING Suncorp Banks

UPDATE 2 – 7/5/13 @ 5:20 pm: Commonwealth Bank and Westpac will also reduce their variable mortgage rates by 0.25%. We will have to wait until Friday for ANZs decision. I expect St George Bank, Bank of Melbourne, Bank SA and RAMS all to follow their owner Westpac. Check below for more changes.

UPDATE 7/5/13 @ 4:01 pm: NAB, ING Direct and Bank of Queensland have all reduced their home loan variable rates by 0.25% in line with the RBA

Today the Reserve Bank of Australia announced that variable interest rates are to drop by 0.25% in an effort to stimulate the economy.

Historically, 2.75% is the lowest interest rates have been ever. As inflation remains low the RBA is looking to stimulate the housing market and retail sector.

The major banks have no excuse not to pass on the full rate cut as they posted profits recently. We will keep an eye on the major banks – ANZ, Westpac, Commonwealth Bank (CBA) and NAB to see how they react to the recent decision. Normally their actions affect how other lenders reduce their rates.

Current Bank Interest Rates Rate Cut Effective Date
Adelaide Bank/ Bendigo Bank -0.25%  May 27th
AMP -0.25  May 24th
ANZ -0.27%  May 17th
Bank of Melbourne -0.25%  May 17th
Bank of Queensland -0.25%  May 24th
BankWest -0.25%  May 20th
Citibank -0.25%  May 20th
Commonwealth Bank -0.25%  May 13th
Homeside Lending -0.25%  May 13th
ING Direct Bank -0.25%  May 17th
Member equity bank ( ME) -0.25%  May 28th
RAMS -0.25%  May 13th
NAB -0.25%  May 13th
St George Bank -0.25%  May 20th
Suncorp Bank -0.25%  May 24th
Westpac -0.25%  May 20th


We will keep you updated on current variable  interest rate reductions. If you have any questions regarding this announcement and how it impacts on your circumstances,  feel free to submit a mortgage quote.


Variable Rates in Hold Fixed Rates are Falling

Yesterday the Reserve Bank of Australia announced that variable interest rates remain on hold at 3.00%.

While variable interest rates remain on hold for February, Fixed rate loans are falling. Unlike variable rates that usually move with RBA announcements fixed rate loans can move at any time.

A number of the major lenders have announced 1,2,3,4 and 5 year fixed rate reductions in the last few days and it might be a good time to secure a low fixed rate loan depending on your lending requirements.

To list a number of fixed rate loan here would be impracticable. The best way to find out which fixed rate loan suits your current lending needs and compare various lenders and rates feel free to submit a mortgage quote.


Interest Rates Drop By 0.25% – ANZ, NAB, Westpac, CBA, ING, St George

*********** UPDATE: Recent Bank Rate Decisions ******************

ANZ hae reduced their mortgage rates by 0.20% today on the 14th December

Westpac and St George  will drop their variable interest rate by 0.20% effective December 17th

Commonwealth Bank (CBA) and NAB announced that they will drop their varibale rates by 0.20% effective December 10th

ING Direct reduce rates by the full amount 0.25% but will let their customers wait until the 24th of this month to receive the benefit

Bank of Queensland the first to move and drops rates by 0.20%

See below for full list


As expected the RBA reduced interest rates by 0.25% reducing the official cash rate to 3.00%

We will have to wait and see what the banks and other mortgage providers do with their variable home loan rates. I feel they will not pass on the full rate cut despite what the government says.

As always we will keep you up to date on each lenders decision.

Banks and Other Lenders
Rate Cut Effective date
Adelaide Bank/Bendigo Bank  -0.20%  December 21st
AMP  -0.20%  December 24th
ANZ  -0.20%
Bank of Queensland ( BOQ) -0.20% December 21st
Bank of Melbourne  -0.20%  December 17th
Bankwest  -0.20%  December 18th
Commonwealth Bank  -0.20%  December 10th
Heritage Bank
Homeside Lending  -0.20%  December 14th
ING Bank  -0.25%  December 24th
Macqauire Bank
NAB  -0.20%  December 10th
St George Bank / Bank SA  -0.20%  December 17th
Suncorp Bank  -0.20%  December 21st
Rock Building Society
Westpac  -0.20%  December 17th


If you would like to speak to a licensed mortgage consultant about your current mortgage or your options click the link below.

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