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

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on October 22, 2019
Citi, HSBC and Pacific Mortgage Group cut fixed home loan rates

Image by P&G via Adobe Stock

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.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • 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%
Variable
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100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
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ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
Variable
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AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO APPLICATION FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO APPLICATION FEES

Yard Home Loan (Principal and Interest) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
UNLIMITED EXTRA REPAYMENTS
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

    Variable
    More details
    EASY DIGITAL APPLICATION
    EASY DIGITAL APPLICATION

    Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

      Variable
      More details
      $0 APPLICATION FEE
      $0 APPLICATION FEE

      Budget Home Loan (Principal and Interest) (LVR < 80%)

        Variable
        More details
        100% FULL OFFSET ACCOUNT
        100% FULL OFFSET ACCOUNT

        Offset Package Home Loan (Principal and Interest) (LVR < 60%)

          Variable
          More details
          LIMITED TIME OFFER
          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services
          LIMITED TIME OFFER

          Smart Booster Home Loan Discounted Variable - 1yr

          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services

          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 be 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. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 27, 2022. View disclaimer.

          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. 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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          author-avatar
          William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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