The Reserve Bank of Australia's (RBA) February rate cut has now been largely passed on to variable rate borrowers.
This week, HSBC, Bank of Sydney, and Tasmania's Bank of Us were among the final lenders to adjust rates.
However, La Trobe Financial stands out as one of the last remaining lenders yet to pass on the cut - it will do so from Monday, 17 March. Meanwhile, Virgin Money appears to be the only lender opting not to pass on the cut at all.
Beyond these variable rate adjustments, several lenders made noteworthy fixed-rate moves this week.
Two mutual banks cut fixed home loan rates by up to 51 basis points - double the RBA's rate reduction. Another lender, having already passed on the RBA cut, has now increased its special offer variable rate.
Let's take a closer look at the biggest rate changes.
Mutual banks slash fixed home loan rates
Among the standout changes this week, Australian Military Bank and Great Southern Bank made significant fixed-rate reductions.
The lowest advertised fixed rate currently available in Your Mortgage's database (excluding green home loans) is 5.29% p.a. (6.01% p.a. comparison rate*) offered by Australian Mutual Bank for owner-occupiers fixing for three years.
Here's how these two lenders have adjusted their fixed-rate offerings:
Australian Military Bank sashes fixed rates by up to 51bp
Australian Military Bank, which serves defence personnel, contractors, and their families, had already passed on the 25-basis-point variable rate cut on 4 March.
This week, it followed up with substantial fixed-rate reductions across multiple terms:
|
Fixed |
Change | New rate |
Comp rate* |
|---|---|---|---|
| 1 Year | -51bp | 5.99% | 6.69% |
| 2 Years | -51bp | 5.59% | 6.54% |
| 3 Years | -25bp | 5.74% | 6.48% |
| 5 Years | -25bp | 6.05% | 6.46% |
Great Southern Bank slashes fixed rates by up to 50bp
Over a week after lowering its variable rates, Great Southern Bank has now cut its fixed-rate offers, with rates as low as 5.79% p.a.
Here's how the new owner-occupier and investor fixed rates compare:
| Fixed term |
Borrower | Change | New rate |
Comp rate* |
|---|---|---|---|---|
| 1 Year | Owner-occupiers | -50bp | 5.99% | 7.62% |
| Investors | -50bp | 6.09% | 8.01% | |
| 2 Years | Owner-occupiers | -35bp | 5.79% | 7.41% |
| Investors | -35bp | 5.89% | 7.76% | |
| 3 Years | Owner-occupiers | -20bp | 5.79% | 7.24% |
| Investors | -20bp | 5.89% | 7.56% | |
| 5 Years | Owner-occupiers | -15bp | 5.94% | 7.00% |
| Investors | -15bp | 6.04% | 7.28% |
The Mutual Bank increases special offer variable rates
While most lenders have focused on reducing rates, The Mutual Bank took a different approach.
After passing on the RBA's full 25-basis-point cut to existing variable rate borrowers, it also cut its advertised variable rates. However, the special offer Budget Home Loan rate only dropped by 20 basis points-less than the RBA's reduction.
Now, The Mutual Bank has reversed some of that cut, raising its special offer rate:
- +5 basis points for owner-occupiers
- +10 basis points for investors
New special variable rates:
| Borrower | Change | New rate | Comp rate* |
|---|---|---|---|
| Owner-occupier | +5bp | 5.74% | 5.74% |
| Investor | +10bp | 5.99% | 5.99% |
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| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.79% p.a. | 5.83% p.a. | $2,931 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.84% p.a. | 5.86% p.a. | $2,947 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.74% p.a. | 5.65% p.a. | $2,915 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure |
Photo by Markus Winkler on Unsplash
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