Photo by Lynda Hinton on Unsplash
In a subdued week for rate movements, Gateway Bank led the charge, with its biggest cuts coming in the investment home loan space.
The 124 basis point cut belonged to the variable investment Low Rate Essentials home loan for LVRs over 85%.
The rate is now down to 3.60% p.a. (3.62% p.a. comparison rate*)
Borrowers with LVRs up to 85% also saw the same home loan cut by 104 basis points, now down to 3.40% p.a. (3.42% p.a. comparison rate*).
Owner-occupiers also saw some big cuts, with the variable Low Rate Essentials product with a maximum 90% LVR seeing a 95 basis point haircut - now down to 3.15% p.a. (3.18% p.a. comparison rate*).
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 investors.

Smart Booster Investor Bundle
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Redraw facility with $0 redraw fee
- Interest-only available
- Refi your existing OO loan to be eligible
Monthly repayments: $1,476
Advertised
Rate (p.a.)
1.99%
Comparison
Rate (p.a.)
2.71%
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Redraw facility with $0 redraw fee
- Interest-only available
- Refi your existing OO loan to be eligible
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) investment 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.
Elsewhere, it was a subdued week for rate changes, with Australian Unity the only other lender of note to cut in the past seven days.
Some home loans to see changes were:
- Health Wealth Happiness Fixed P&I 1 Year: 15 basis point cut to 2.59% p.a. (2.91% p.a. comparison rate*)
- Health Wealth Happiness Fixed P&I 3 Years: 15 basis point cut to 2.59% p.a. (2.86% p.a. comparison rate*)
- Kick Starter Discount Variable P&I: 15 basis point cut to 2.59% p.a. (2.62% p.a. comparison rate*)
Various other packaged and non-packaged loans for both owner-occupiers and investors were cut by between 10 and 15 basis points.
Note that 'discounts' and 'special offers' could expire at any time.
New 'lowest ever' home loan
At the start of the week, Reduce Home Loans also introduced its 'lowest ever' home loan.
Called the 'Rate Cutter', it's a variable product for owner-occupiers, primarily aimed at those with either a big deposit or those who are refinancing and have built up some equity, as it has a maximum LVR of 60%.
The rate is 1.89% p.a. (1.92% p.a. comparison rate*).
Reduce also has another sub-2% advertised rate home loan for borrowers with a smaller deposit.
Overall, in Savings.com.au's market research, there are ten lenders offering sub-2% home loans.
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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