Loans.com.au cuts variable & fixed home loan rates

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on July 08, 2020
Loans.com.au cuts variable & fixed home loan rates

Photo by Natalie Su on Unsplash

Online lender Loans.com.au has cut home loan rates on several of its mortgage products.

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.

Lender

Variable
More details
UNLIMITED REDRAWS
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWS

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 August 7, 2022. 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.

Lender

Fixed
More details
No ongoing feesFree redraw facility
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
No ongoing feesFree redraw facility

Live-in Fixed Loan (Principal and Interest) 1 Year

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Fixed
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Fixed
More details
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

Fixed Rate Home Loan (Principal and Interest) 3 Years

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Fixed
More details
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 August 7, 2022. View disclaimer.




Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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