Effective today (Wednesday 8 July), loans.com.au has cut its Smart Home Loan 80 (owner-occupier, principal and interest) variable rate to 2.57% p.a. (2.59% p.a. comparison rate*), a cut of six basis points. 

In March, this loan's interest rate was 2.63% p.a (2.65% p.a comparison rate*). 

The online lender has also cut its two-year fixed rate for owner-occupiers paying principal and interest to just 2.29% p.a. (2.98% p.a. comparison rate*)

Other two-year fixed-rates fresh off loans.com.au's chopping block include: 

  • Owner-occupier, interest-only: 2.79% p.a (3.05% p.a. comparison rate*)
  • Investor, principal and interest: 2.69% p.a (3.34% p.a. comparison rate*)
  • Investor, interest-only: 2.99% p.a (3.38% p.a. comparison rate*)

In March, these rates were significantly higher: 

  • Owner-occupier, interest-only: 3.28% p.a (3.34% p.a. comparison rate*)
  • Investor, principal and interest: 3.08% p.a (3.61% p.a. comparison rate*)
  • Investor, interest-only: 3.48% p.a (3.66% p.a. comparison rate*)

These fixed-rate discounts are for LVRs up to 80%, and are for a limited time only for new customers. 

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.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Managing Director of loans.com.au Marie Mortimer said the lower rates would be an unbeatable proposition for borrowers when combined with its faster processing times, which Ms Mortimer said were up to 10 times faster than some banks.

“Our rates are highly competitive but, just as important, we process most loans in 24-48 hours once we have received a completed application, while processing times at some major lenders have blown out to more than three weeks,” she said.

“Most buyers can’t wait for weeks for a simple answer on a loan application so our service advantage is becoming an ever greater draw card.”

Product

Max LVR

Repayments

Interest Rate

Comparison Rate

Smart Home Loan 80

80%

P&I

2.57%

2.59%

2 year fixed – Special Offer

90%

P&I

2.29%

2.98%

Source: Loans.com.au 

Ms Mortimer also said this "robust" online lending model has further demonstrated its value during COVID-19. 

“Just like online shopping, online lending has proven to be much more resilient than bricks-and-mortar to the challenges of the COVID-19 world and is quickly moving to centre stage,” Ms Mortimer said.

“We have been able to provide uninterrupted service throughout the crisis and ensured that Australians can easily get a competitively-priced property loan without leaving their home.”

Could now be the time to fix? 

As seen above, most of the changes made were to fixed-rate home loans. 

Many banks and lenders have been cutting fixed rate home loans recently, with one challenger lender even offering home loan rates under-2% mark on a three-year fixed mortgage. 

Mortgage Choice Chief Executive Officer Susan Mitchell said data shows 33% of borrowers opted to fix either part or all of their mortgage rate in the month up to June 2020. 

In comparison, just 14% did the same in the three months to February 2020. 

“Lenders have been pulling out all stops to compete for market share and over the last few months, we have seen cash back offers and interest rates lowered across both variable and fixed rate home loan products," Ms Mitchell said. 

"This fierce competition has encouraged a vast number of borrowers to switch their home loan providers and refinance their loans.

“The uncertainty created by the current economic downturn and the historic low fixed interest rates on offer are urging more borrowers to fix their home loan interest rates."

Buying an investment property or looking to refinance? The table below features home loans with some of the lowest fixed interest rates on the market for owner-occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.24% p.a.
6.29% p.a.
$2,460
Principal & Interest
Fixed
$0
$0
90%
Free Redraw Facility
6.09% p.a.
6.19% p.a.
$2,421
Principal & Interest
Fixed
$0
$350
80%
6.69% p.a.
7.77% p.a.
$2,578
Principal & Interest
Fixed
$395
$0
80%
6.69% p.a.
7.19% p.a.
$2,578
Principal & Interest
Fixed
$0
$160
80%
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.



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