Hold your fire, but here's the best fixed and variable big bank offerings from the Big Four banks and their subsidiaries
Ahead of today's decision by the RBA to cut the cash rate to 2.75%, the big banks were being urged to cut their variable mortgage rates.
Certainly home loan borrowers and the government will expect the major banks to pass on any cash rate cut in full to borrowers if that eventuates today after both Westpac and ANZ reported 10% rises in half-year cash profits of more than $3 billion each last week.
However, both Westpac chief executive Gail Kelly and ANZ boss Mike Smith have indicated that they would not consider cutting their home loan rates out of cycle of the RBA.
The major banks and their subsidiary brands dominate the home lending market, writing four out of every five new home loans according to April AFG figures.
Westpac is the biggest multi-brand player among the big four with Bank of Melbourne, St. George, BankSA and RAMS alongside its premier Westpac brand offering mortgages to borrowers.
NAB sells loans through it ‘red star’ brand, via mortgage brokers through its HomeSide offering and through its online offering UBank. It also owns mortgage aggregators PLAN, Choice and FAST, which sell loans through mortgage brokers.
The Commonwealth Bank owns Bankwest as well mortgage broker Aussie Home Loans, funding Aussie Home Loan-branded products.
These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison website homeloanfinder.com.au as of May 6:
Lowest variable rate offerings:
Provider | Loan name | Rate | Comparison rate* |
UBank | UHomeLoan - Refinance Variable Loan with a special Upfront Discount of 0.25% | 5.12% | 5.12% |
Bankwest | Online Home Loan | 5.38% | 5.39% |
Aussie | Select Basic Variable loan (LVR (70.01% – 80%) | 5.49% | 5.50% |
Lowest one-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
UBank | UHomeLoan - 1 Year Fixed Rate - Refinance Only | 4.83% | 5.34% |
Aussie | Aussie Optimizer Fixed Rate Home Loan - 1 Year Fixed Rate | 4.95% | 5.62% |
RAMS | RAMS Fixed Rate Home Loan - 1 Year Fixed Rate | 4.99% | 6.29% |
Lowest two-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
NAB | Choice Package - Two Year Fixed Rate | 4.99% | 6.00% |
Commonwealth Bank | Two Years Fixed Wealth Package Home Loan | 4.99% | 6.09% |
Bankwest | Fixed Rate Home Loan - Two Year Fixed Rate | 4.99% | 6.27% |
Lowest three-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
UBank | UHomeLoan - Three Year Fixed Rate - Refinance Only | 5.13% | 5.26% |
Bankwest | Bankwest Fixed Rate Home Loan - Three Year Fixed Rate | 5.19% | 6.21% |
NAB | Choice Package - Three Year Fixed Rate | 5.29% | 6.02% |
Lowest five-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
Bankwest | Fixed Rate Home Loan - 5 Year Fixed Rate | 5.49% | 6.15% |
NAB | Choice Package - 5 Year Fixed Rate | 5.55% | 6.05% |
NAB | Tailored Fixed Rate Home Loan - 5 Year Fixed Rate | 5.65% | 6.15% |
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.