Beyond Bank is lowering fixed home loan rates while others are raising

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Beyond Bank continues to cut fixed home loan rates, with some cutting as much as 50 basis points over the past week, while other lenders are gradually increasing their rates.

Two of Beyond Bank’s biggest cuts were made on fixed-rate home loans (IO) with a term of two to three years:

  • Home loan total 2 years: Reduction of 50 basis points to 2.39% pa (4.30% pa comparison rate *)
  • Home loan total 3 years: Reduction of 50 basis points to 2.39% pa (4.15% pa comparison rate *)

The new interest rates apply to borrowers with a maximum loan-to-value (LVR) of 80% and are advertised as a “special offer”, so they can be revoked at any time.

The corresponding fixed loans with repayment and interest (P&I) were also reduced by 20 basis points.

A number of other Beyond Bank investment loans were also cut by 10 basis points.

Some more lenders raised home loan interest rates this week

A number of other, smaller lenders raised home loan interest rates slightly after ANZ, Westpac, NAB, and CommBank recently did so.

These lenders include BCUthat has raised interest rates on some five-year fixed-term loans:

  • Investment Fixed IO 5 years: Increase by 10 basis points to 2.89% pa (3.69% pa comparison rate *)
  • Investment fix P&I 5 years: Increase by 10 basis points to 2.79% pa (3.65% pa comparison rate *)
  • Wohn-Fest P&I 5 years: Increase by 10 basis points to 2.59% pa (3.47% pa comparison rate *)

Qudos Bank interest rates on a large part of home loans also increased by 10 basis points. Some notable ones are:

  • Owner-employed P&I for 3 years 90%: Increased to 2.19% pa (2.64% pa comparison rate *)
  • Investment P&I 3 years 90%: Increased to 2.59% pa (3.08% pa comparison rate *)

That said, Qudos Bank has also slightly cut rates on a number of home and construction loans by 5 to 10 basis points.

Horizon bench also increased the interest on two home loans by 10 basis points:

  • Owner occupies 3 years: Increased to 2.29% pa (3.23% pa ​​comparison rate *)
  • Fixed investment 3 years: Increased to 2.54% pa (3.48% pa comparison rate *)

Term Funding Facility in the rearview mirror

It takes less than a week for the Reserve Bank’s Term Funding Facility (TFF) to wind down and put an end to the very cheap bank financing that helped flood the market with cheap home loans.

Some experts said its end would result in a “substantial” rise in mortgage rates.

Regulators’ data also show that the introduction of the TFF has been accompanied by an increase in “riskier” loans, particularly in terms of the debt-to-income ratio.

So what’s the wrap on the TFF?

The RBA data released on Monday shows an additional $ 9.3 billion has been drawn from the over $ 200 billion facility last week, bringing the total to $ 147.4 billion since inception.

That means an additional $ 61.6 billion to be drawn by the end of the month.

Tick ​​tock.

When it rains it pours …


Photo by Jason Abdilla on Unsplash

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