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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.

Smart Booster Home Loan
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
Advertised
Rate (p.a.)
1.99%
Comparison
Rate (p.a.)
2.47%
Product Features
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) owner-occupied home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
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*)
Disclaimers
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): Credit Union Australia, 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 Savings.com.au
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, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au 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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