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Let's face it - 2020 sucked for a lot of people (and 2021 is looking not much better) but those looking for a more affordable home loan were treated to a bevy of rate changes.
Two lenders have made some rate changes already, including HomeStar Finance, which cut on New Year's Day when most people were dozing off:
- Star Fixed 2 Years P&I 80%: 56 basis point cut to 1.88% p.a. (2.26% p.a. comparison rate*)
HomeStar also cut the equivalent 70% LVR loan by 46 basis points. Borrowers must apply for this 'special' rate by 31 January and have the loan settled by 30 April.
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.54% p.a. | 5.58% p.a. | $2,852 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.49% p.a. | 5.40% p.a. | $2,836 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $250 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $248 | $350 | 60% |
| Disclosure |
Conversely, HomeStar also had a few home loan rate rises, presumably as special offers came to an end, including some investment home loans raised by up to 46 basis points.
Some owner occupier loans were also hiked by up to 54 basis points.
QBank was another institution to make some cuts to home loans under 2%.
- Fixed 2 Years: 2 basis point cut to 1.97% p.a. (3.54% p.a. comparison rate*)
- Fixed 4 Years: 2 basis point cut to 1.97% p.a. (3.26% p.a. comparison rate*)
These home loans are for owner occupiers paying principal and interest (P&I) with a maximum loan-to-value (LVR) of 90%, and are 'special offers', meaning they could change at any time.
QBank also tinkered with its home loans, raising others by up to 15 basis points, as new 'special offers' took effect and as old offers expired.
There are now at least 35 lenders with a home loan below the 2% advertised rate mark.
Photo by Immo Wegmann on Unsplash
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