Photo by Vicko Mozara on Unsplash
Leading online lender Loans.com.au has slashed its fixed interest rates by 20 basis points across the board, bringing some of its fixed rates below 3% for the first time.
Loans.com.au’s two-year fixed rate special has been cut from 3.19% p.a. to 2.99% p.a. (3.29% p.a. comparison rate*).
The three-year fixed rate special has also been cut to 2.99% p.a. (3.27% p.a. comparison rate*).
Both fixed-rate loans are for owner-occupiers making principal and interest (P&I) repayments with an LVR up to 80%.
For investors making interest-only repayments (IO), loans.com.au now offers a fixed-rate home loan with one of the lowest comparison rates of its kind on the market.
Low fixed-rate home loans for owner occupiers (P&I)
See how one of loans.com.au’s new fixed rates for P&I owner-occupiers compares with some of the sharpest fixed rates on offer from the big four and the top 10 customer-owned institutions. Table sorted by comp rate*.
| Provider | Ad rate p.a. |
Comp rate* p.a. |
Monthly repayments |
|
|---|---|---|---|---|
| Fixed OO P&I 3yrs | 2.99% | 3.27% | $1,685 | More details |
| Basic Fixed 3yrs | 2.94% | 3.36% | $1,673 | More details |
| Fixed OO 3yrs | 3.13% | 4.42% | $1,715 | More details |
| Ad rate p.a. |
Comp rate* p.a. |
Monthly repayments |
|
|---|---|---|---|
| Fixed OO P&I 3yrs | |||
| 2.99% | 3.27% | $1,685 | |
| More details | |||
| Basic Fixed 3yrs | |||
| 2.94% | 3.36% | $1,673 | |
| More details | |||
| Fixed OO 3yrs | |||
| 3.13% | 4.42% | $1,715 | |
| More details | |||
Base criteria of: a $400,000 loan amount, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 4 November 2019. View disclaimer.
Low fixed-rate home loans for investors (IO)
See how one of loans.com.au’s new fixed rates for IO investors compares with some of the sharpest fixed rates on offer from the big four and the top 10 customer-owned institutions. Table sorted by comp rate*.
| Provider | Ad rate p.a. |
Comp rate* p.a. |
Monthly repayments |
|
|---|---|---|---|---|
| Fixed Investor IO 3yrs | 3.59% | 3.67% | $1,197 | More details |
| Great Rate Inv Fixed IO 5yrs | 3.59% | 4.02% | $1,197 | More details |
| Inv Tailored Fixed 5yrs | 3.89% | 4.90% | $1,297 | More details |
| Ad rate p.a. |
Comp rate* p.a. |
Monthly repayments |
|
|---|---|---|---|
| Fixed Investor IO 3yrs | |||
| 3.59% | 3.67% | $1,197 | |
| More details | |||
| Great Rate Inv Fixed IO 5yrs | |||
| 3.59% | 4.02% | $1,197 | |
| More details | |||
| Inv Tailored Fixed 5yrs | |||
| 3.89% | 4.90% | $1,297 | |
| More details | |||
Base criteria of: a $400,000 loan amount, fixed, interest-only (IO) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 4 November 2019. View disclaimer.
Loans.com.au’s Managing Director Marie Mortimer said the new low rates would help borrowers lock-in historically low rates.
“Fixed-rate loans offer a number of advantages over a variable rate loan because they make budgeting easier and protect you from any future interest rate rises,” Ms Mortimer said.
“No-one can predict where variable rates will go from here but with rates this low, the potential benefits from further variable rate cuts are tiny and locking in these extraordinarily low fixed rates is an increasingly attractive option.”
Ms Mortimer said that borrowers who were considering switching to a fixed rate should take the opportunity to reassess their loan provider and think about refinancing.
“Home loans tend to be set and forget so, on those rare occasions when you take the time to focus on your home loan, make a point of checking out the other options in the market too,” Ms Mortimer said.
“Many people are keen to leave the big banks and are surprised to discover how easy it is to refinance and the great deals that are out there with online lenders.
“Most of our customers tell us that they delayed refinancing because they thought it would be a big hassle but it turned out to be much simpler than they expected and well worth the time invested.”
Loans.com.au’s new fixed home loan interest rates
| Home loan | Old advertised rate | NEW advertised rate | NEW comp rate* |
| Fixed – Investor IO 1 yr | 3.99% p.a. | 3.79% p.a. | 3.70% p.a.* |
| Fixed – Investor IO 2 yrs | 3.79% p.a. | 3.59% p.a. | 3.68% p.a.* |
| Fixed – Investor IO 3 yrs | 3.79% p.a. | 3.59% p.a. | 3.67% p.a.* |
| Fixed – Investor P&I 1 yr | 3.84% p.a. | 3.64% p.a. | 3.69% p.a.* |
| Fixed – Investor P&I 2 yrs | 3.59% p.a. | 3.39% p.a. | 3.65% p.a.* |
| Fixed – Investor P&I 3 yrs | 3.59% p.a. | 3.39% p.a. | 3.63% p.a.* |
| Fixed – Owner Occupier IO 1 yr | 3.79% p.a. | 3.59% p.a. | 3.36% p.a.* |
| Fixed – Owner Occupier IO 2 yrs | 3.54% p.a. | 3.34% p.a. | 3.34% p.a.* |
| Fixed – Owner Occupier IO 3 yrs | 3.54% p.a. | 3.34% p.a. | 3.35% p.a.* |
| Fixed – Owner Occupier P&I 1 yr | 3.64% p.a. | 3.44% p.a. | 3.35% p.a.* |
| Fixed – Owner Occupier P&I 2 yrs | 3.19% p.a. | 2.99% p.a. | 3.29% p.a.* |
| Fixed – Owner Occupier P&I 3 yrs | 3.19% p.a. | 2.99% p.a. | 3.27% p.a.* |
Note: P&I=Principal and Interest, IO=Interest Only, OO=Owner Occupier
In the interests of full disclosure, Savings.com.au and loans.com.au are a 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.
