Loans.com.au cuts fixed rates below 3%

Emma Duffy By on November 4, 2019
 
loans.com.au rate cuts

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 loanOld advertised rateNEW advertised rateNEW comp rate*
Fixed – Investor IO 1 yr3.99% p.a.3.79% p.a.3.70% p.a.*
Fixed – Investor IO 2 yrs3.79% p.a. 3.59% p.a. 3.68% p.a.*
Fixed – Investor IO 3 yrs3.79% p.a. 3.59% p.a. 3.67% p.a.*
Fixed – Investor P&I 1 yr3.84% p.a. 3.64% p.a. 3.69% p.a.*
Fixed – Investor P&I 2 yrs3.59% p.a. 3.39% p.a. 3.65% p.a.*
Fixed – Investor P&I 3 yrs3.59% p.a. 3.39% p.a. 3.63% p.a.*
Fixed – Owner Occupier IO 1 yr3.79% p.a. 3.59% p.a. 3.36% p.a.*
Fixed – Owner Occupier IO 2 yrs3.54% p.a. 3.34% p.a. 3.34% p.a.*
Fixed – Owner Occupier IO 3 yrs3.54% p.a. 3.34% p.a. 3.35% p.a.*
Fixed – Owner Occupier P&I 1 yr3.64% p.a. 3.44% p.a. 3.35% p.a.*
Fixed – Owner Occupier P&I 2 yrs3.19% p.a. 2.99% p.a. 3.29% p.a.*
Fixed – Owner Occupier P&I 3 yrs3.19% 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. 

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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 2018. 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 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers’ products may not be available in all states.

In the interests of full disclosure, Savings.com.au 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 includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.

Emma Duffy
Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand.
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