Home Loan Rates Stay Steady
The Age
Monday April 20, 1998
HOME loan interest rates were static over the past week, despite persistent rumors that economic conditions pointed to room for a cut in official rates.
On a straight rate comparison - ignoring start-up costs, insurance charges and the effect of being able to increase the amount of regular repayments - the ANZ variable owner-occupier loan at 5.99 per cent was the cheapest around. The rate for people borrowing from ANZ to finance an investment property was 6.9 per cent.
Of the other lenders, Super Home Loans was among the cheapest, with a rate of 6.10 per cent for variable owner occupied loans. And unlike most of the larger banks, Super Home Loans doesn't up the rate for investment properties.
Anyone trying to organise a home loan to maximise the effects of any movement in interest rates could do worse than package half the loan on a fixed rate for a fixed term and take the balance as a variable product whose rates move up or down according to market forces, says Andrew Willink from Cannex.
BEST MORTGAGE RATES
Owner occupied Investment
Equity
Rates to Variable Intro 2 year 3 year 5 year Variable
Intro Variable
15-Apr-98 rates* fixed fifed fixed rates* BANKS
ANZ 5.99 n/a 6.25 6.70 7.25 6.90 n/a 7.20
Bank Melbourne 6.70 5.99 6.25 6.70 7.25 7.40 5.99 7.70
Bendigo Bank 6.85 n/a 6.65 6.99 7.35 6.85 n/a 7.75
BNZA 6.65 5.69 n/a n/a n/a 6.65 5.69 7.15
Challenge Bank 6.19 n/a 6.70 6.99 7.25 6.29 n/a 6.69
Citibank 6.49 n/a 6.60 6.75 7.25 6.49 n/a 7.25
Colonial State Bank 6.69 5.69 6.25 6.69 7.25 6.69 5.69
7.49
Commonwealth 6.15 n/a 6.55 6.75 7.25 6.15 n/a 7.20
HongkongBank 6.70 5.95 6.28 6.56 6.92 6.70 5.95 7.65
ING Bank 6.45 5.75 6.40 6.70 7.10 6.45 5.75 7.45
Metway 6.80 5.99 6.70 6.90 7.25 7.45 5.99 7.20
National 6.70 5.75 6.50 6.75 7.25 6.70 5.75 7.70
St George 6.80 5.99 6.65 6.75 7.20 7.80 n/a 7.80
Trust Bank 6.80 5.99 6.65 6.99 7.25 7.80 5.99 7.55
Westpac 6.19 n/a 6.70 6.99 7.25 6.29 n/a 7.19
Building Societies/Credit Unions
Advantage CU 6.69 n/a 6.49 6.99 n/a 6.69 n/a 7.19
Australian Unity 7.65 n/a 6.50 6.65 n/a 7.65 n/a
n/a
Cornerstone 6.80 n/a 7.15 7.35 n/a 6.80 n/a 8.25
Education CU 6.50 n/a n/a n/a n/a 6.85 n/a n/a
Enterprise CU 6.70 n/a n/a n/a n/a 6.70 n/a 7.25
GIO 6.35 n/a 6.45 6.75 7.05 6.35 n/a 6.74
IOOF 6.45 5.75 6.65 6.99 n/a 6.45 5.75 7.50
Maroondah CU 6.49 n/a n/a n/a n/a 6.49 n/a 7.95
Melbourne CU 5.99 n/a n/a n/a n/a 5.99 n/a 6.95
NRMA B.Soc 6.19 n/a 6.55 6.55 7.25 6.19 n/a 7.60
Sirocredit 6.70 n/a n/a n/a n/a 7.40 n/a n/a
Victoria Teachers CU 6.70 n/a n/a n/a n/a 6.70 n/a
n/a
Other Lenders
AMP'S PriorityOne 6.47 n/a 6.55 6.75 7.35 6.47 n/a
n/a
Aussie Home 6.49 n/a 6.60 6.85 7.20 6.49 n/a 6.75
Austral Mortgage 6.35 n/a 6.70 6.95 6.99 6.35 n/a
6.95
BMC Mortgage 6.19 n/a 6.55 6.80 7.15 6.19 n/a 6.95
Collins Securities 6.15 n/a 6.50 6.75 7.10 6.15 n/a
6.95
COUNT Financial 6.20 n/a 6.65 6.65 6.99 6.20 n/a
n/a
FAI Home Loans 6.09 n/a 6.65 6.95 7.55 6.09 n/a 6.95
La Trobe H Australia 6.45 n/a 6.65 6.99 7.25 6.45 n/a
7.25
Macquarie 6.70 n/a n/a 6.75 7.10 6.70 n/a 6.99
National Mutual Life 6.49 n/a n/a 6.85 7.20 6.49 n/a
6.95
Pioneer 6.45 n/a 6.60 6.85 7.15 6.45 n/a 6.95
Prudential 6.45 5.49 6.60 6.85 7.25 6.45 5.49 n/a
RACV 6.49 n/a 6.70 6.95 7.35 6.49 n/a n/a
Rescom Mortgage 6.45 5.99 6.40 6.65 7.00 6.45 5.99
n/a
Settlers Home Loans 6.25 6.19 6.55 6.80 7.20 6.25 6.19
n/a
Super Home Loans 6.10 n/a n/a 6.60 6.90 6.10 n/a
n/a
Where there is more than one product, the lowest rate is quoted. Source:
CANNEX (PollFax 019 725 661 Calls cost 75 cents per minute)
Source: J.B. Were
Best mortgage rates
© 1998 The Age