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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 | ||||||||||||
| FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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| Variable | More details | ||||||||||||
| FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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| Variable | More details | ||||||||||||
| NSW/VIC/SA METRO & INNER REGIONAL AREAS | Variable Home Loan (Principal and Interest)
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Variable Home Loan (Principal and Interest)
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| Variable | More details | ||||||||||||
| REFINANCE ONLY | Variable Rate Home Loan – Refinance Only
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Variable Rate Home Loan – Refinance Only
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| Variable | More details | ||||||||||||
| NO ONGOING FEESFREE REDRAW FACILITY | Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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- 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%
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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