Despite the Reserve Bank of Australia holding off a rate adjustment this month, more lenders are joining the rate-cut bandwagon, with Bankwest, ME Bank, and UBank being the latest to make their move to keep up with their bigger rivals.
ME Bank and NAB-owned UBank both repriced their owner-occupier and investor home loans — the former slashed its variable and fixed interest rates by up to 26 basis points while the latter announced up to 30 basis-point rate reduction, according to a report in 10 Daily.
The most significant rate reductions from both lenders are for investor borrowers. ME Bank's two-year fixed-rate principal-and-interest (P&I) investor home loan now bears a new rate of 3.88% while UBank's five-year fixed-rate interest-only (I&O) investor home loan incurs a reduced rate of 4.39%
The table below shows the changes in ME Bank and UBank's mortgage rates for owner-occupier and investor home loans.
ME Bank Rate Changes |
|
Owner-occupier (P&I) offerings |
New Rate |
|
Variable Home Loan ($400-$700K) |
3.79% |
|
|
3.58% |
Investor (P&I) offerings |
New Rate |
|
Variable ($400-$700K) ≤80% LVR |
4.17% |
|
Two-year Fixed-Rate ≤80% LVR |
3.88% |
UBank Rate Changes |
|
Owner-occupier (P&I) offerings |
New Rate |
|
Three-Year Fixed-Rate |
3.59% |
|
Five-Year Fixed-Rate |
3.94% |
Investor (P&I) offerings |
New Rate |
|
One-Year Fixed-Rate |
3.99% |
|
Two-Year Fixed-Rate |
3.99% |
|
Three-Year Fixed-Rate |
4.24% |
Investor (I&O) offerings |
New Rate |
|
One-Year Fixed-Rate |
4.14% |
|
Two-Year Fixed-Rate |
4.14% |
|
Three-Year Fixed-Rate |
4.39% |
Perth-based Bankwest, a lender owned by Commonwealth Bank, also trimmed its fixed rates by up to 50 basis points, an AAP report said.
Its three-year owner-occupier principal-and-interest home loan now has a reduced mortgage rate of 3.48%, which, according to AAP, is the lowest in the market.
Bankwest also lowered the interest rate of its three-year investor home loan to 3.88%.
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