Bank of Queensland and Australian Military Bank cut variable home loan rates this week. 

The moves came amid an unexpected federal budget and new inflation figures – this time for the month of February.

Neither appear to have major implications for the Reserve Bank of Australia (RBA).

The RBA monetary policy board will meet on Monday and announce a cash rate decision on Tuesday – the majority of the market is forecasting a hold.

Looking further forward, however, and the May meeting could answer the hopes of embattled mortgage holders.

But in the meantime, those in the market for a new home loan might be drawn to this week's shiny new rate cuts:

BoQ slashes variable rates for owner-occupiers and investors

Bank of Queensland dropped its special offer variable home loan rates to as low as 5.88% p.a. for owner-occupiers and 5.99% p.a. for investors.

That's despite continued silence on the topic of rates from its subsidiary Virgin Money – the only lender that refused to pass on the RBA's February rate cut.

Owner-occupiers borrowing at least $150,000 may be eligible for the following special offer rates:

(The bank's Clear Path home loan offers an offset account while its Economy option houses its lowest rate).

Product LVR Change New rate Comp rate*
Economy <80% -5bp 5.88% 6.03%
80–90% -5bp 6.09% 6.24%
Clear Path <80% -15bp 5.99% 6.11%
80–90% -15bp 6.24% 6.36%

Property investors can now realise these special offer rates on the bank's Economy mortgage:

Interest option LVR Change New rate Comp rate*
Interest only ≤80% -5bp 6.14% 6.20%
Principal and interest ≤80% -10bp 5.99% 6.14%

Australian Military Bank slashes variable rates by up to 44bp

Australian Military Bank made significant cuts across its RateSaver and Value home loans, with new rates starting from 5.89% p.a. for owner-occupiers – regardless of whether they use the Defence Home Ownership Assistance Scheme.

The RateSaver home loan carries the bank’s lowest rate, while the Value option offers an offset account.

New rates for owner-occupiers include:

Product LVR Change New rate Comp rate*
RateSaver Home Loan <60% -29bp 5.89% 5.92%
60-70% -19bp 5.99% 6.02%
70-80% -34bp 6.09% 6.12%
80-90% -14bp 6.29% 6.32%
90-95% -44bp 6.54% 6.57%
Value Home Loan <60% -44bp 6.29% 6.32%
60-70% -34bp 6.39% 6.42%
70-80% -24bp 6.49% 6.52%
80-90% -4bp 6.69% 6.72%
90-95% -15bp 6.94% 6.98%

Other movers

  • Summerland Bank cut 5bp from its Eco Home Loan's rate for borrowers with LVRs of 60% or less and dropped its special one year fixed rate to 5.74% for LVRs of 60% to 80%
  • Soon-to-merge G&C Mutual and Unity Bank slashed 45bp from their Advantage Home Loan lineup – rates now start at 6.04% p.a. 

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.79% p.a.
5.83% p.a.
$2,931
Principal & Interest
Variable
$0
$530
90%
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.84% p.a.
5.86% p.a.
$2,947
Principal & Interest
Variable
$0
$250
60%
  • Easy application. Fast approval. No annual fee.
  • Unlimited additional repayments free of charge.
  • Redraw freely - Access your additional payments.
 Disclosure
5.74% p.a.
5.65% p.a.
$2,915
Principal & Interest
Variable
$0
$0
80%
100% owned by Commbank
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

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