More banks join rate cut frenzy

Three banks have announced major changes to their mortgage pricing, with one cutting rates by up to 70 basis points.

Bank of Queensland (BOQ) has made significant cuts to its investor and owner-occupier rates, with its Investor Clear Path variable rate seeing the biggest drop, down 70 basis points to 4.19 per cent. The bank’s owner-occupier variable rate for its Clear Path loan has been reduced by 48 basis points to 3.99 per cent.

BOQ’s three-year fixed rate has been reduced by 60 basis points for owner-occupiers to 3.69 per cent, and by 40 basis points for investors to 3.89 per cent.

The new rates apply to new loan applications keyed from Wednesday, July 13, 2016 that are greater than $150,000 and with a maximum LVR of up to 80 per cent. The rates are not available for construction, restructure or refinance of existing BOQ facilities and SMSF loans.

Meanwhile, ANZ has reduced its fixed rates for investors by 45 basis points, which now sees the major bank’s standalone two-year rate start at 4.14 per cent, and at 3.99 per cent as part of its Breakfree package.

Bank of Sydney (BOS) has also announced a change to its mortgage pricing, reducing the variable rate on its Expect More Home Loan by a further 9 basis points to 3.79 per cent.

BOS’ new rate is available for loans with a maximum LVR of 70 per cent and where the property is located in metro postcodes. Borrowers must also be PAYG employees to qualify for the new rate.

The Expect More Home Loan also offers a 100 per cent offset account and an annual fee-free credit card, and is available for purchases and refinancing.

[Related: Suncorp Bank reveals new variable mortgage offering]

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