Illawarra Credit Union introduces a sub-2% home loan, Tic:Toc winds down fixed rate

author-avatar By on September 25, 2020
Illawarra Credit Union introduces a sub-2% home loan, Tic:Toc winds down fixed rate

Photo by Caleb Semeri on Unsplash

While the Dragons are out of NRL finals contention, Illawarra Credit Union gave something to smile about with a new sub-2% home loan.

The 1.99% p.a. advertised rate (2.93% p.a comparison rate*) is for the 'The Works' packaged home loan for owner-occupiers paying principal & interest (P&I).

Borrowers get a choice of either a two-year variable introductory rate or a two-year fixed rate - the advertised and comparison rates are the same.

After the two-year intro rate ends, the home loan reverts to a rate of 2.50% p.a. (3.01% p.a. comparison rate*).

Borrowers must also pay their home loan repayments through the linked transaction account.

Buying a home or looking to refinance? The table below features home loans with some of the lowest fixed interest rates on the market for owner occupiers.

Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Fixed Rate Home Loan (Principal and Interest) 2 Years

FixedMore details

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

FixedMore details

Fixed Rate Home Loan (Principal and Interest) 3 Years

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of September 27, 2021. View disclaimer.

While both look the same on the surface, the differences between variable rates and fixed rates are explained further here.

Illawarra Credit Union is now the 11th lender in's market research to introduce a sub-2% home loan.

The new rate, introduced late Thursday, comes after experts forecasted another Reserve Bank cash rate cut in October.

More to come...

See Also: The Potential $35,000 Cost of Breaking a Fixed Home Loan

Tic:Toc also reduces

Yesterday, Tic:Toc also reduced the interest rate of its 'Live-In' fixed home loan by 18 basis points, down to 2.09% p.a. (2.35% p.a. comparison rate*)

It's fixed for two years, for owner-occupiers paying P&I, with LVRs up to 90%.

Tic:Toc spokesperson Laura Osti also said it's available with a 100% offset account.

"Combine that with our 100% online process with faster turn-arounds, and our team of Australian-based experts itching to help outside of business hours, and we think this is one of the best deals in the market," she said.

"It’s not surprising there has been an increasing demand for fixed home loans – there is some very sharp fixed rate pricing at the moment, and with Covid, it makes sense Australians would want some certainty in payments during an uncertain time in our lives."


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Harrison is's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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