Home loan rates slashed by two big banks

Commbank and ING both have slashed the interest rates on their home loan packages as per the recent news in September 2020.

Currently, the home loan rates are between 2-3% With low-interest rates, it seems like one of the best time ever to buy a house. On top of that, there is a myriad of additional grants or discounts for first home buyers. For someone who is keen to buy his or her first home, there is really no reason not to buy one in this time where rates are record low.

Commonwealth Bank has shaved several of its loan products by up to 15 basis points, with its lowest advertised variable rate at 2.69 per cent. ING, the country’s fifth-largest bank in terms of household balances and mortgages, has also has reduced rates for its suite of lending products, cutting by 10 basis points leading to new variable rate as 2.49 per cent.

Disclaimer: Please check their official websites for latest and more accurate information.

The reduction in rates by these two banks may push others to follow and come up with some strategy to match them. This seems to be a war between the Aussie banks and who knows where it will end. One thing is for sure that consumers doesn’t mind low rates at all. Especially in these tough economic times due to Covid19, everyone is trying to save some money.

Paying the mortgage is the biggest cost each week for most of the Australians and having a low rate always helps.

RateCity research director Sally Tindall said Friday’s cuts would force the rest of the banking industry to begin slashing rates before the Reserve Bank likely cuts the official cash rate in either October or November.

“Home loan rates might be at record lows, but it’s unlikely to have hit the bottom yet,” she said.

“These cuts from CBA, Westpac and ING will force other lenders to cut their rates in an effort to outbid Australia’s biggest banks.”

Westpac is already offering something which is very tempting for anyone who is looking to refinance. Westpac is offering low rates of 2.29% p.a.^ variable rate (2.72% p.a. comparison rate*) plus $3,000 cashback when you refinance with them. This amount is even good enough to pay the breaking fee (if any) for your existing home loan.

The only catch is LVR should be max 80% which may be a deal breaker for some while for others it may not be an issue if they have already paid out most of their loan.