Customer-owned banks slash home loan rates

author-avatar By
on December 04, 2020
Customer-owned banks slash home loan rates

Northern Inland Credit Union, BCU, Hunter United, and LCU all cut home loan interest rates recently, with a couple of new advertised rates under 2%.

Lenders have continued to lower their mortgage rates, despite December's cash rate remaining unchanged at 0.10%

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

Lender

Variable
More details
  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws

Variable Home Loan (LVR < 70%)

  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
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 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 ONGOING FEES

Yard PAYG 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

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 August 10, 2022. View disclaimer.

Northern Inland Credit Union introduced a couple of different home loans with an advertised interest rate below 2%, adding to the list of near 40 lenders to have already done so.

For example, the new 'Dream Value' home loan is 1.89% p.a. (2.28% p.a. comparison rate*).

The loan is variable, for owner occupiers paying principal & interest (P&I) with a maximum LVR of 60%, and is offered to new borrowers as a 'special offer' only. 

This is one of only a few products under 2% on a variable basi, as many are on a fixed basis instead. 

BCU also cut a fair few home loans for owner occupiers and investors alike.

The owner occupier two year fixed loan paying P&I was cut by 14 basis points down to 1.98% p.a. (3.76% p.a. comparison rate*).

For investors, the lowest rate to get a cut was the two year fixed loan paying P&I, cut by 21 basis points down to 2.18% p.a. (3.92% p.a. comparison rate*).

Meanwhile, Hunter United cut a few of its 'No Regrets' home loans by 10 basis points.

For first home buyers, the variable rate is now 2.69% p.a. (2.69% p.a. comparison rate*), and borrowers can have up to 90% LVR.

ragrets

Source: Tenor GIF

LCU also introduced a home loan under 2% - its 'Introductory Home Loan' is 1.99% p.a. (3.12% p.a. comparison rate*).

It's a three-year fixed rate for new owner occupiers paying P&I. 

Reduce Home Loans also cut a few of its 'Home Owners Dream' loans by 25 basis points.

For example, its one-year fixed loan with a maximum LVR of 80% is now 1.94% p.a. (2.71% p.a. comparison rate*).


Photo by Rob Laughter on Unsplash



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
Harrison is Savings.com.au'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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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