People's Choice stands alone in cutting mortgage rates this week

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on April 17, 2020
People's Choice stands alone in cutting mortgage rates this week

Photo by Kabir Kotwal on Unsplash

People's Choice Credit Union was one of the only lenders to cut interest rates in the past week, cutting by up to 45 basis points.

It was a fairly quiet week for home loan rate cuts, as many lenders cut right after the Reserve Bank slashed its cash rate to 0.25% in March.

In previous weeks, fixed home loans saw most attention, with advertised rates now hovering close to the elusive 1% mark.

That trend looks to continue, with People's Choice Credit Union being one of the only significant lenders to cut rates in the past week.

The People's Choice home loans that saw the 45 basis point cut were fixed investment loans for four and five years, paying principal and interest (P&I).

For four years, the advertised interest rate is now 3.44% p.a. (4.71% p.a. comparison rate*)

And for five years, the rate is now also 3.44% (4.59% p.a. comparison rate*)

People's Choice Credit Union chief Steve Laidlaw said the cuts were in response to the 'competitive landscape'.

"Ultimately, we are focused on making sure our members have access to a competitive offering backed by an institution with their interests at heart," he said.

Some of the other rate cuts made by People's Choice were:

  • Residential Fixed P&I 3 Years: 30 basis point cut to 2.44% p.a. (4.11% p.a. comparison rate*)
  • Residential Fixed P&I 2 Years: 20 basis point cut to 2.44% p.a. (4.28% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years: 39 basis point cut to 2.89% p.a. (4.70% p.a. comparison rate*)
  • Investment Fixed P&I 2 Years: 39 basis point cut to 2.79% p.a. (4.86% p.a. comparison rate*)

Fixed rate home loan interest rates are now comparable to variable rate home loans: The table below shows a selection of variable, owner-occupied home loans with some of the lowest interest rates in the market.

Lender

Variable
More details
UNLIMITED REDRAWS
UNLIMITED REDRAWS

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

    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
    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
    AN EASY DIGITAL APPLICATION
    • No ongoing fees - None!
    • Unlimited additional repayments
    • Easy online application, find out if you're approved quick!
    • Redraw- Access your additional payments if you need them
    • Use the app to get loan insights to help you pay off your home loan faster
    AN EASY DIGITAL APPLICATION

    Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

    • No ongoing fees - None!
    • Unlimited additional repayments
    • Easy online application, find out if you're approved quick!
    • Redraw- Access your additional payments if you need them
    • Use the app to get loan insights to help you pay off your home loan faster
    Variable
    More details
    • Low rate home loan with added benefits, add offset for 0.10%
    • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
    • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs apply

    Green Home Loan (Principal and Interest)

    • Low rate home loan with added benefits, add offset for 0.10%
    • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
    • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs 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 August 10, 2022. View disclaimer.




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    author-avatar
    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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