Invest
The winners and losers from banks’ discount rates
When it comes to discounted home loan products, some borrowers will gain the benefits but others will pay the price.
The winners and losers from banks’ discount rates
When it comes to discounted home loan products, some borrowers will gain the benefits but others will pay the price.
That’s according to the latest data from comparison service RateCity. It shows there are more than 170 home loan products on the market targeting new customers, but loyal customers are likely to pay the price.
“Australians are a loyal bunch. More than three-quarters of us have home loans with a big four bank. But when it comes to your home loan, loyalty doesn’t pay,” research director at RateCity Sally Tindall said.
“Banks are hungry for new business and they are offering discounts worth hundreds, even thousands, of dollars per year to lure customers in. Six out of 10 of the biggest lenders in the country are doing it, so it’s likely that millions of variable customers are being taken for a ride.”
RateCity noted that a customer with the Base Variable Rate Home Loan paying principal and interest at NAB could be paying up to 0.48 percentage points more than a new customer today. Assuming this customer borrowed $400,000 in August 2017, they would be paying more than $110 extra a month and $1,320 a year.
Heritage Bank recently adjusted its rates to offer new borrowers a discount of up to 0.23 percentage points, while ANZ slashed the rate on its no-frills product by 0.34 percentage points for new customers.
Savers paying a variable rate are entitled to haggle, Ms Tindall added.
According to RateCity, these are the lowest ongoing variable home loan rates.
|
Company |
Product |
Advertised rate % |
|
Reduce Home Loans |
Rate Lovers Variable Home Loan (Amounts <$750k, LVR <80%) |
3.44 |
|
Easy Street Financial Services |
Standard Variable Home Loan (New Money Offer) |
3.49 |
|
Homestar Finance |
Variable Rate Home Loan (Principal and Interest) (Amounts <$750k, LVR <70%) |
3.49 |
|
Freedom Lend |
Freedom Variable Home Loan Special Offer |
3.49 |
RELATED ARTICLES
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
