CommBank and NAB slash variable rates on home loans despite impending RBA decision

With a waning appetite for new home loans, major banks are hoping to attract new borrowers by reducing variable rates on home loans.

The biggest declines seen in the market over the past week were 80 basis points (0.80%).

CommBank ended the week by cutting a number of variable home loan rates for homeowners and investors, both on principal and interest (P&I) and interest only (IO) loan options.

The decision to cut variable rates by up to 80 basis points comes as ABS lending data for July was revealed the value of mortgage loan commitments to new owner-occupiers fell by 7.0%, while new investor loan commitments fell by 11.2%.

For homeowners, the major declines in CommBank’s variable home loan portfolio include:

  • Additional P&I Decrease of 10 basis points to 3.69% per year (comparative rate of 3.70% per year*)
  • Additional P&I 80-95%: Decrease of 10 basis points to 4.64% per year (comparative rate of 4.65% per year*)

For investors, the main declines include:

  • Additional P&I investment Decrease of 10 basis points to 3.99% per year (comparative rate of 4.00% per year*)
  • Extra P&I investment 80-90%: Decrease of 80 basis points to 4.49% per year (comparative rate of 4.50% per year*)
  • Extra IO investment 80-90%: Decrease of 80 basis points to 5.05% per year (comparative rate of 4.73% per year*)

NAB cuts variable rates on home loans by up to 0.30% per annum

By cutting variable rates earlier this week, NAB’s cut applies to three “Base” variable rate home loans with a loan-to-value ratio (LVR) of 80%.

Big Bank drops include:

  • P&I special offer at basic variable rate Decrease of 20 basis points to 3.74% per year
  • Investment Base Floating Rate P&I Special Decrease of 30 basis points to 4.24% per year
  • Investment base variable rate OI special offer Decline of 5 basis points to 4.69% per year

Around the field

Bankwest cuts variable rates on home loans by up to 0.20% per year

Following the lead of the majors, Bankwest cut variable rates this week by up to 20 basis points.

Changes to Bankwest Variable Rate Home Loans apply to those with an LVR of 70% or 80%.

Highlights of these changes include:

  • Premium Select OO P&I home loan 80%: Decrease of 10 basis points to 3.69% per year (comparative rate of 3.71% per year*)
  • Full home loan Variable owner occupied at 80% 750,000 +: Decrease of 10 basis points to 3.69% per year (comparative rate of 3.71% per year*)
  • Premium Select Home Loan Investment P&I 80% $20,000+: Decrease of 20 basis points to 3.99% per year (comparative rate of 4.01% per year*)
  • Investment full variable real estate loan 750k + 80%: Decrease of 15 basis points to 3.99% per year (comparative rate of 4.01% per year*)

Australian Mutual Bank raises variable mortgage rates by 0.90% a year

The mutual bank raised variable rates on home loans by up to 90 basis points over the past week.

Increases to the Australian Mutual Bank’s home loan portfolio apply to variable rate loans with an LVR of 95%.

The main changes include:

  • Basic variable mortgage loan: Increase of 90 basis points to 3.94% per year (comparative rate of 4.01% per year*)
  • Default variable: Increase of 90 basis points to 4.19% pa (comparative rate of 4.26% pa*)
  • Basic variable of the loan for the purchase of a first home: Increase of 90 basis points to 3.94% per annum (comparative rate of 3.97% per annum*)
  • Standard Variable first-time buyer loan: Increase of 90 basis points to 4.19% per year (comparative rate of 4.22% per year*)
  • Investment variable: Increase of 90 basis points to 4.69% pa (comparative rate of 4.76% pa*)

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Lender


Variable More details

Variable Housing Loan (LVR
  • 30% minimum deposit
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Variable More details
REFINANCING ONLY

Variable Rate Home Loan – Refinance Only

  • A low variable rate home loan from a 100% online lender. Supported by the Commonwealth Bank.
Variable More details
AN EASY DIGITAL APPLICATION

Careful variable real estate loan (capital and interest) (LVR

  • No ongoing fees – None!
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  • Easy online application, quickly find out if you are approved!
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Careful variable real estate loan (capital and interest) (LVR
  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster

Variable More details
QLD/NSW/VIC/SA METRO AND INLAND REGIONAL AREAS

Variable real estate loan (capital and interest)

  • $5000 cash back. Terms and conditions apply.

Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, repayment type, loan term and LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of September 2, 2022. See disclaimer.


Image by K8 via Unsplash

The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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