Lenders shake up home loan rates as hopes of near-term RBA cut wane

The Reserve Bank of Australia (RBA) released the minutes of its November board meeting on Tuesday, prompting Westpac to revise its cash rate outlook from a February 2025 cut to May 2025. 

While an earlier cut remains possible, the bank noted that the "balance of probabilities" now favour a later move.

Westpac's shift aligns with NAB, which delayed its cash rate cut forecast to May just last week.

In the meantime, multiple lenders adjusted their home loan interest rates, with notable changes from ANZ, Tiimely Home, and AMP Bank, all of which changed rates.

Let's dive into the details.

ANZ cuts special offer variable home loan rates 

The smallest of the big four banks slashed variable rates on its Simplicity Plus line up for borrowers making principal and interest repayments on Friday. 

The basic product offers ANZ's lowest variable rate, excluding that advertised for on app-based ANZ Plus Home Loan (6.09% p.a., 6.10% p.a. comparison rate*), and can include an offset account for an additional $10 per month.

The new rates are inclusive of a special offer discount available to those taking out new or additional borrowings of more than $50,000 through the bank. 

Refinancers or first home buyers might also be able to make the most of ANZ's current cashback offer.

Today's interest rate changes are as follows:

Borrower	LVR	Change	New Rate	Comparison Rate*
Owner-occupier	<60%	-15bp	6.39%	6.39%
Investor		-5bp	6.64%	6.64%
Owner-occupier	60-70%	-15bp	6.44%	6.44%
Investor		-5bp	6.69%	6.69%
Owner-occupier	70-80%	-10bp	6.54%	6.54%
Investor		-5bp	6.79%	6.79%
Owner-occupier	80-90%	-15bp	7.09%	7.09%
Investor		-15bp	7.49%	7.49%

Tiimely Home hikes leading variable rate 5 basis points

Bendigo Bank-backed Tiimely Home increased the interest rate on its ultra-competitive variable rate home loan product for owner-occupiers this week.

The Tiimely Own variable rate mortgage, known for offering some of the lowest rates to borrowers with deposits of at least 10%, saw its rate rise by five basis points, moving from 5.94% p.a. to 5.99% p.a. (6.00% p.a. comparison rate*).

This adjustment aligns the rate on the product with that on the lender's offset option for owner-occupiers.

However, borrowers opting for the offset product may face a higher comparison rate, indicating potential additional fees.

AMP Bank lifts fixed home loan rates by up to 50 basis points

AMP Bank defied recent trends this week by hiking fixed rates across its Professional Package lineup.

New fixed rates for owner-occupiers are as follows:

Fixed Period	LVR	Change	New Rate	Comparison Rate*
One year	≤80%	+10bp	6.04%	7.20%
	80-90%	+10bp	6.24%	7.30%
Two years	≤80%	+10bp	5.89%	7.06%
	80-90%	+10bp	6.09%	7.16%
Three years	≤80%	+10bp	5.89%	6.94%
	80-90%	+10bp	6.09%	7.16%
Five years	≤80%	+10bp	6.29%	6.91%
	80-90%	+10bp	6.49%	7.04%

Meanwhile, investors making principal and interest repayments might face these new rates:

Fixed Period	LVR	Change	New Rate	Comparison Rate*
One year	≤80%	+5bp	6.14%	7.21%
	80-90%	+5bp	6.34%	7.34%
Two years	≤80%	+5bp	5.94%	7.07%
	80-90%	+5bp	6.14%	7.20%
Three years	≤80%	+5bp	5.89%	6.94%
	80-90%	+5bp	6.09%	7.08%
Five years	≤80%	+40bp	6.39%	6.95%
	80-90%	+40bp	6.59%	7.10%

MyState Bank cuts special variable rates by up to 10 basis points

Tasmania-based MyState Bank made many moves this week, lifting rates on much of its fixed rate lineup while simultaneously slashing those on its variable special offer rates.

Changes to the latter for owner-occupiers making principal and interest repayments include:

Product	LVR	Change	New Rate	Comparison Rate*
Special Residential Home Loan	≤60%	-10bp	6.04%	6.10%
	60-70%	-10bp	6.09%	6.15%
	≤80%	-5bp	6.19%	6.25%

Other movers

• Illawarra Credit Union dropped select variable rates by up to five basis points
• Summerland Bank lowered home loan rates by five basis points
• BankVic changed rates on fixed rate and offset products by as much as 46 basis points
• GMCU cut two- and three-year fixed rates by up to 20 basis points

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