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.

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 Savings.com.au'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."

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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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