People's Choice releases a sub-2% home loan for first home buyers

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on August 21, 2020
People's Choice releases a sub-2% home loan for first home buyers

Photo by Jakob Cotton on Unsplash

People's Choice Credit Union has introduced a sub-2% home loan, becoming the sixth lender to do so, according to Savings.com.au's market research.

People's Choice is offering first home buyers a one-year-fixed home loan interest rate of 1.99% p.a. (3.91% p.a. comparison rate*).

The 'special offer' is available for a limited time as a home loan package for first home buyers submitting new applications from 21 August, and is "subject to change without notice".

The news comes after Bank First also broke the barrier on Wednesday.

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 REDRAWSSPECIAL OFFER
  • 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 REDRAWSSPECIAL 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%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • 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
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
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
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 June 26, 2022. View disclaimer.

ME Bank yo-yos, Suncorp hikes

ME Bank is seemingly yo-yoing the rates of its fixed home loans with several cuts today.

In May, the same loans were hiked by up to 30 basis points, while on 26 March they were cut by more than 100 basis points as a special 'COVID-19 discount'.

The cuts were to its 'Flexible Fixed' home loans, for fixed periods between one and three years, for owner-occupiers paying principal and interest (P&I), with a maximum LVR of 80%. 

The advertised rate for all three of these home loans stands at 2.34% p.a., representing cuts by between 20 and 40 basis points. The comparison rates are below:

  • Fixed 1 Year: 4.15% p.a. comparison rate*
  • Fixed 2 Years: 3.98% p.a. comparison rate*
  • Fixed 3 Years:  3.82% p.a. comparison rate*

Corresponding 'Member Package' home loans were also cut, which feature up to a 15 basis point discount off the non-package advertised rate. 

ME Bank's general manager of home lending Andrew Bartolo said customers are looking at fixed rates for certainty.

“This offer will help first home buyers achieve their dream of home ownership faster by only requiring a 10% deposit (with LMI), put more money back in their pockets through a lower rate, and give them peace of mind with certainty on exactly what their repayments will be a year or more in advance," he said.

Meanwhile, on Tuesday, Suncorp raised a few of its home loan interest rates by 20 basis points, including:

  • Home Package Plus Investment Fixed 2 Years: Now 2.99% p.a. (3.68% p.a. comparison rate*)
  • Home Package Plus Investment Fixed 3 Years: Now 2.99% p.a. (3.66% p.a. comparison rate*)

These home loans are for investors paying P&I, with an LVR between 80% and 90%.

See Also: The $35,000 cost of breaking a fixed home loan


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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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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