Greater Bank introduces two sub-2% home loans

author-avatar By on September 08, 2020
Greater Bank introduces two sub-2% home loans

Photo by Maxwell Dugan on Unsplash

Today Greater Bank introduced two home loans under the 2.00% p.a. advertised rate barrier for owner-occupiers, with both being fixed for one year.

Greater Bank's two home loans have an advertised rate of 1.99% p.a. and are fixed for one year.

However, the 'Great Rate' home loan has a comparison rate of 3.52% p.a., while the Ultimate Home Loan has a comparison rate of 3.74% p.a.

The 'Ultimate Home Loan' is a packaged product and includes flexible repayments, an offset account, and a waived annual credit card fee.

The new rates are for new and existing borrowers with a maximum LVR of 80%, borrowing a minimum of $150,000.

In Savings.com.au's market research, Greater Bank is the tenth lender to introduce a home loan beginning with a '1'.

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.

Greater Bank CEO Scott Morgan credits the record low Reserve Bank cash rate and the term funding facility for allowing the lender to introduce the home loans.

“It’s hard to believe that the market now offers a fixed-term rate with a ‘1’ at the start, such is the time we are living," he said.

"What this does is provide an opportunity for new and existing customers to look at their current financial position and consider fixing their home loan.

“This move will ensure that Greater Bank remains very competitive against the industry’s major players in this fixed loan market."

The majority of the home loans beginning with a '1' tend to either be variable or fixed for one year.

While variable rates can change at any time at the discretion of the lender or due to market forces, fixed home loans provide certainty for a set period.

However, fixed loans can also attract break fees if a borrower decides to refinance before their fixed term is over.


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 2019. 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 2020) 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. 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.

*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.

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author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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