Just last week, Westpac cut its lowest variable rate, while NAB and ANZ trimmed theirs on March 9 and Feb. 8, respectively. Westpac had the lowest variable rate on offer out of the four big banks, at 2.09%.
The cuts from all big four banks are only available to new customers on their basic variable rate loans.
RateCity.com.au compiled the big four banks’ lowest variable rates for owner-occupiers:
|
Bank |
Basic variable |
Min LVR |
|---|---|---|
|
2.19% |
70% |
|
|
Westpac |
2.09% |
70% |
|
NAB |
2.19% |
80% |
|
ANZ |
2.19% |
70% |
Note: Rates are for an owner-occupier paying principal and interest on the banks’ basic variable rate loans (no offset account). LVRs apply to these rates.
CBA has also hiked its fixed rates for owner-occupier and investors for the third time this year. The 0.3% increase for owner-occupiers means CBA now only has one fixed rate under 3%.
Here’s CBA’s home loan changes for owner-occupiers, according to RateCity.com.au:
|
Rate type |
Old rates |
New rate |
Difference |
|---|---|---|---|
|
Variable |
2.29% |
2.19% |
-0.1% |
|
1-yr fixed |
2.79% |
2.99% |
+0.2% |
|
2-yr fixed |
2.99% |
3.29% |
+0.3% |
|
3-yr fixed |
3.49% |
3.79% |
+0.3% |
|
4-yr fixed |
3.69% |
3.99% |
+0.3% |
|
5-yr fixed |
3.99% |
4.29% |
+0.3% |
Note: Rates are for an owner-occupier paying principal and interest. LVR requirements apply.
“Ultra-low fixed rates might have flown the coop, but the big four banks are still cutting their lowest variable rates,” said Sally Tindall, RateCity.com.au research director. “The fact that Australia’s two largest banks have both cut variable rates within two days of each other may prompt other lenders to reassess their rates. There are currently 35 lenders offering variable rates under 2% including mainstream banks like HSBC and Citi. There might be dozens of variable rates still under 2%, however, none of these are likely to last long once the RBA starts hiking.”
Tindall said variable-rate mortgage holders have a window of opportunity to get themselves a rate cut before the RBA makes its move.
“If your bank is offering a lower variable rate to new customers than what you’re on, get on the phone and haggle,” she said. “A rate cut now will help cushion the blow when variable rates do rise.”
