(Updated, October 18) The movement of mortgage rates remained a hot topic over the past week, as some lenders — including Commonwealth Bank and ING — have lowered their variable rates.

These changes were made more than one week after an increase in the servicing rates for home loan applications by Australian Prudential Regulation Authority.

Brighter Finance founder Marcus Roberts said that APRA’s recent move was designed to lower risks for applicants who want to borrow at maximum capacity. 

“The interest rates actually reduced by some lenders are closer both to the lender’s ability to accept new business and the expected cost of the funds they will be able to borrow. Your Mortgage was informed by him that, although they might seem to be at odds with each other, they are often used for very different purposes.

Roberts stated that it was important for borrowers understand their financial situation in order to cancel or reduce unutilized credit card accounts.

“Whilst we are currently in a low interest rate environment, it’s important to understand not just what your actual repayments are as at today, but what they would look like if they were 1% higher or more — are you still comfortable with the repayments should interest rates rise in the medium to longer term?” He said that.

Commonwealth Bank

Commonwealth Bank has reduced its variable rates offering for its investor and owner-occupier product line.

Notable was the 40bps loan reduction for owner-occupiers with a LVR under 70% under Extra home Loan.

CBA raised some fixed rates for owner-occupiers between now and then, especially those with fixed rate terms at least two years.

Owner-occupier Rates:

  • Extra P&I 80-95%– down 14bps – 2.99% per year (3% p.a. Comparison rate
  • Extra P&I 70-80%– 30bps reduction to 2.39% per annum (2.4% p.a. Comparative rate
  • Extra P&I <70%– Dropped 40bps to 2.29 % p.a. (2.3% p.a. Comparative rate
  • Residential Fixed P&I 1 yr– Down 10bps to 2.04% per annum (4.47% p.a. (4.47% p.a.
  • Residential Fixed P&I 2 yrs– From 2.24% up to 10bps p.a. (4.28% p.a. Comparative rate
  • Residential Fixed P&I 3 yrs– 2.44% p.a. (4.15% p.a. (4.15% p.a.
  • Wealth Package Residential Fixed P&I 1 yr 150k+– Down 10bps to 1.99% (4.1% per annum). Comparison rate
  • Wealth Package Residential Fixed P&I 2 yrs 150k+– Up to 10bps up to 2.09 p.a. (3.96% p.a. Comparison rate
  • Wealth Package Residential Fixed P&I 3 yrs 150k+– From 10bps to 2.099% per annum (3.87% per annum). Comparison rate

Rates for Investors

  • Inv Extra P&I <70%– Reduced 23bps to 2.899% p.a. (2.9% p.a. Comparative rate
  • Inv Extra P&I 70-80%– Reduced by 16bps to 2.99% p.a. (3% p.a. Comparative rate
  • Investment Fixed P&I 1 yr– 20bps drop to 2.64% per annum (5.03% p.a. Comparison rate
  • Wealth Package Investment Fixed P&I 1 yr 150k+– Reduced 20bps at 2.49 % (4.66% per year). Comparable rate

ING

Similar moves were made by ING in relation to its mortgage rates.

The lender has reduced variable rates for investors and owners by up to 25bps

ING however, raised the fixed rates of owner occupiers as high as 20bps

Variable Rates

  • Orange Advantage Variable Pi150-499k 80%– Drop 25bps to 2.29p.a. (2.64% p.a. Comparison rate
  • Orange Advantage Variable, PI 500 – 9999k 80%– Drop 25bps to 2.29p.a. (2.64% p.a. Comparison rate
  • Mortgage Simplifier PI 150-499k 80%– Drop 25bps to 2.24 P.A. (2.27% p.a. Comparative rate
  • Mortgage Simplifier PI 500-999k 80%– Drop 25bps to 2.24 P.A. (2.27% p.a. Comparative rate

Fixed Rates

  • Orange Advantage Residential Fixed 3 yrs ≤ 80%Maximum 20bps to 2.09 p.a. (3.61% p.a. Comparison rate
  • Orange Advantage Residential Fixed 4 yrs ≤ 80%– From 20bps to 2.54 per annum (3.61% p.a. Comparative rate
  • Orange Advantage Residential Fixed 5 yrs ≤ 80%– 20bps up to 2.69 per annum (3.56% P.A. Comparison rate
  • Residential Fixed 2 yrs ≤80%– From 5bps to as high as 1.99 p.a. (3.75% p.a. (3.75% p.a.
  • Residential Fixed 3 yrs ≤80%– 20bps to 2.99 p.a. (3.64% p.a. Comparison rate
  • Residential Fixed 4 yrs ≤80%– 20bps up to 2.64 per annum (3.64%/p.a. Comparison rate
  • Residential Fixed 5 yrs ≤80%20bps to 2.99 p.a. (3.60% p.a. (3.60% p.a.

Investor Rates

  • Variable PI 150-499k for Inv Orange Advantage– Drop 25bps to 2.4% per annum (2.79%/p.a. Comparison rate
  • Variable Inv orange Advantage PI 500k-1m– decreased 25bps to 2.44 p.a. (2.79% p.a. Comparative rate
  • Inv Mortgage Simplifier PI 150-499k– fell 25bps to 2.39 p.a. (2.42% p.a. Comparison rate
  • Inv Mortgage Simplifier PI 500k+– Declined by 25bps to 2.39 P.A. (2.42% p.a. Comparison rate

Westpac 

Westpac has increased its fixed rate for the fourth consecutive calendar year. 

The bank increased the fixed-rate offer to owner-occupiers by tenbps. Premier Advantage borrowers also benefit from the rate increase.

These are some of the important changes to be aware:

  • Premier Advantage Fixed Options P&I 2 yrs 70% 150k+ – 1.99% p.a. (3.40% p.a. Comparative rate
  • Premier Advantage Fixed Options P&I 3 yrs 70% 150k+ – 2.08% p.a. (3.33% p.a. Comparative rate
  • Premier Advantage Fixed Options P&I 2 yrs 95% 150k+ – 2.09% p.a. (3.5% p.a. Comparison rate
  • Premier Advantage Fixed Options P&I 3 yrs 95% 150k+ – 2.18% p.a. (3.42% p.a. Comparison rate
  • Fixed Options P&I 2 yrs 95% – 2.29% (4.31% p.a. Comparative rate
  • Fixed Options P&I 3 yrs 95% – 2.38% (4.15% p.a. Comparative rate
  • Fixed Options P&I 2 yrs 70% – 2.19% (4.21% p.a. Comparison rate
  • Fixed Options P&I 3 yrs 70% – 2.28% (4.05% p.a. Comparison rate

Greater Bank 

Customers own Greater Bank. They also raised rates for investors as well as owner-occupiers. 

Greater Bank raised its 3-year fixed rates by 15% across its Ultimate Discount, Great Rate Products. 

However, the 35bps increase to the fixed rate standard for three years was more than anticipated. It currently stands at 2.34% per year. 

These are just a few of the changes.

  • Ultimate Fixed 3-year Warranty – 2.14% p.a. (3.55% p.a. Comparative rate
  • Amazing Rates for 3 Years – 2.14% (2.19% p.a. Comparison rate
  • Ultimate Discount Investment P&I Fixed 3 yrs 150k+ – 2.34% p.a. (3.11% p.a. Comparison rate
  • Great Rate Discount Investment Fixed P&I 3 yrs $150k+ – 2.34% p.a. (2.31% p.a. Comparison rate

Australian Military Bank

Australian Military Bank, which is owned by customers has reduced its one year fixed interest rate by 94% and increased its 3-year fixed by 10% These rates are for fixed-rate products.

  • Fixed Rate for 1 Year – decreased by 94bps, to 1.95 % per annum (4.46% p.a. (4.46% p.a.
  • 3-Year Fixed Rate– From 10bps to 2.29% per year (4.1% p.a. Comparison rate

AMP Bank

Variable rates for investors applying for AMP will be lower due to the lender having lowered mortgage costs on loans under Professional Package line.

These are the changes

  • Professional Package Investment Variable P&I ≤80% 100-499k – 2.39% p.a. (down 63bps) /2.91% p.a. Comparison rate
  • Variable IO 80% Professional Investment Package – Investing Variable IO – 0-499k– decreased by 54bps, to 2.79% p.a. (2.97% p.a. Comparison rate
  • Professional Package Investment Variable P&I 90% 100-499k– Lower 52bps to 3.09% per Annum (3.49% P.A. Comparison rate
  • Professional Package Investment Line of Credit 100-499k– dropped 54bps to 2.99% annum (3.13% per annum). Comparison rate
  • Professional Package Investment Construction 100 – 500k – Down 54bps to 2.79% p.a. (3.45% p.a. Comparison rate

Unity Bank

Unity Bank, which is owned by its members, has reduced its Two-year fixed rate for owner-occupiers paying P&I. The current rate is 2.24 p.a. (25 bps lower) and 3.97% p.a. Comparative rate