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.
Smart Booster Home Loan
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
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%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
“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.
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): 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.
- 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.
- Pros and cons of refinancing your home loan
- What is a green personal loan and what can it be used for?
- Would credit regulation kill buy now, pay later platforms?
- Why fixed rate home loans may be dangerous
- Hydrogen cars - the new ‘green’ fuel source?