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

author-avatar By 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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

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%
LIMITED TIME OFFER

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%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 27, 2021. 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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

FixedMore details
FREE REDRAW FACILITY

Fixed Rate OO P&I - 2 Years

FREE REDRAW FACILITY
FixedMore details
NO UPFRONT OR ONGOING FEES

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

NO UPFRONT OR ONGOING FEES
FixedMore details

Owner Occupier Fixed 2 year (LVR < 60%) (Principal and Interest)

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 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. Rates correct as of October 27, 2021. 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 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): Great Southern Bank, 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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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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