Citi, HSBC and Pacific Mortgage Group cut fixed home loan rates

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With at least one more cash rate cut expected in the near future, a few more lenders have cut fixed home loan rates below 3.00% p.a. – enticing borrowers to lock in their interest rates.

Retail banks Citi and HSBC, plus Sydney-based non-bank lender Pacific Mortgage Group, are among those now offering sub-3.00% p.a. fixed rates for three years or more.

Notably, Citi even cut some of its five-year fixed loans below the 3.00% p.a. threshold for both owner-occupiers and investors.

On the surface, the newly advertised fixed rates compare favourably with some of the lowest variable home loan rates on the market, although there can be added dangers to fixed-rate products.

Below are some of the lowest variable home loan rates on offer across the big four banks, customer-owned banks and larger non-banks.

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• Fast turnaround times, can meet 30-day settlement
• For purchase and refinance, min 20% deposit
• No ongoing or monthly fees, add offset for 0.10%

Monthly repayments:$1,601

2.60%Advertised Rate (p.a.)

2.96%Comparison Rate*

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Citi fixed rate cuts

Citi cut a number of fixed-rate home loans for owner occupiers and investors by up to 70 basis points to as low as 2.74% p.a. (comparison rates differ, see below).

Mortgage Plus (package) Standard home loans:

• One-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.33% p.a. comparison rate*)
• Two-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.31% p.a. comparison rate*)
• Three-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.29% p.a. comparison rate*)
• Five-year fixed Mortgage Plus Standard for borrowers making P&I repayments with a loan size of 250k+ has been cut by 45 basis points to 2.74% p.a. (3.26% p.a. comparison rate*)

Standard Fixed home loans:

• One-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (5.24% p.a. comparison rate*)
• Two-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (5.00% p.a. comparison rate*)
• Three-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (4.79% p.a. comparison rate*)
• Five-year Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 45 basis points to 2.74% p.a. (4.42% p.a. comparison rate*)

Investment loans (without Mortgage Plus):

• One-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (5.26% p.a. comparison rate*)
• Two-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (5.05% p.a. comparison rate*)
• Three-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (5.26% p.a. comparison rate*)
• Five-year Investment Standard Fixed for borrowers making P&I repayments with a loan size of $250k+ has been cut by 70 basis points to 2.99% p.a. (4.52% p.a. comparison rate*)

HSBC fixed rate cuts

HSBC cut some of its owner occupier fixed rates by up to 44 basis points to as low as 2.75% p.a. (comparison rates differ, see below).

• One-year Premier Residential Fixed for borrowers making P&I repayments with a loan size of $500k+ has been cut by 24 basis points to 2.75% p.a. (3.50% p.a. comparison rate*)
• Three-year Premier Residential Fixed for borrowers making P&I repayments with a loan size of $500k+ has been cut by 44 basis points to 2.75% p.a. (3.45% p.a. comparison rate*)
• One-year Residential Fixed for borrowers making P&I repayments has been cut by 44 basis points to 2.75% p.a. (3.50% comparison rate*)

Pacific Mortgage Group fixed rate cuts

Lesser-known Pacific Mortgage Group have made smaller cuts to a couple of its fixed home loans for owner occupiers, slashing rates on both by 20 basis points to 2.74% p.a. (comparison rates differ, see below).

• Two-year Residential Fixed for borrowers making P&I repayments has been cut by 20 basis points to 2.74% (2.83% p.a. comparison rate*)
• Three-year Residential Fixed for borrowers making P&I repayments has been cut by 20 basis points to 2.74% (2.82% p.a. comparison rate*)

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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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