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

author-avatar By 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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES

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 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. Rates correct as of September 27, 2021. View disclaimer.


Disclaimers

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

Latest Articles

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 is passionate about breaking down complex financial topics for the everyday consumer.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree to the Savings Privacy Policy