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Fixed mortgage rates cut

Fixed mortgage rates cut

Borrowers looking to lock in their home loan interest rate may have more potential mortgage options to choose from, with Bankwest and Northern Inland Credit Union cutting fixed rates on selected home loans.

Earlier this month, Northern Inland Credit Union cut fixed rates on its one, two, three and five-year home loans, for both owner occupiers and investors. Fixed rates on the one, two and three-year home loans were cut by 15 basis points, while the fixed five-year loans experienced a 10 basis point reduction in interest rates.

LoanNew interest rateNew comparison rateOld interest rateOld comparison rateChange
Northern Inland CU Smart Home Loan Fixed 1 Year4.09%5.60%4.24%5.62%-0.15
Northern Inland CU Smart Home Loan Fixed 2 Years4.09%5.46%4.24%5.49%-0.15
Northern Inland CU Smart Home Loan Fixed 3 Years4.09%5.34%4.24%5.38%-0.15
Northern Inland CU Smart Home Loan Fixed 5 Years4.49%5.28%4.59%5.32%-0.10
Northern Inland CU Smart Investment Loan Fixed 1 Year4.09%5.60%4.24%5.62%-0.15
Northern Inland CU Smart InvestmentLoan Fixed 2 Years4.09%5.46%4.24%5.49%-0.15
Northern Inland CU Smart InvestmentLoan Fixed 3 Years4.09%5.34%4.24%5.38%-0.15
Northern Inland CU Smart InvestmentLoan Fixed 5 Years4.49%5.28%4.59%5.32%-0.10

Bankwest last week cut fixed rates on selected five-year and two-year home loans, including principal and interest and interest only options for both owner occupiers and investors. The largest interest rate cut was by 55 basis points, while the smallest was by just 4 basis points.

At the same time, Bankwest cut the variable interest rate on its Complete Variable Investment Loan by ten basis points, though only for new customers paying interest only.

LoanNew interest rateNew comparison rateOld interest rateOld comparison rateChange
Bankwest Complete Fixed Home Loan 5 Years3.99%4.50%4.54%4.73%-0.55
Bankwest Complete Fixed Investment Loan 2 Years3.94%5.00%3.98%5.01%-0.04
Bankwest Complete Fixed InvestmentLoan 2Years (Interest Only)4.18%5.03%4.48%5.09%-0.30
Bankwest Complete Fixed InvestmentLoan 5Years4.19%4.92%4.74%5.15%-0.55
Bankwest Complete Fixed InvestmentLoan 5Years (Interest Only)4.88%5.17%5.04%5.24%-0.16
Bankwest Complete Variable Investment Loan (Interest Only) (New Customer) (LVR 80%-90%)4.74%5.11%4.84%5.21%-0.10

Choosing a home loan with a fixed interest rate can mean consistent repayments and simpler budgeting for the duration of the fixed term. Plus, borrowers can be protected from sudden “bill shock” if variable rates were to rise. However, if variable interest rates were cut, borrowers on fixed rate home loans wouldn’t enjoy interest savings until their fixed term expires. 

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This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.

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