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.
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) 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. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
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.
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
