Photo by kevin turcios on Unsplash
Late last week, Freedom Lend introduced a new sub-2% home loan, one year fixed for owner occupiers paying principal & interest with 80% LVR.
The 'Freedom Fixed' loan is 1.99% p.a. (2.43% p.a. comparison rate*), and makes it the 14th lender in Savings.com.au's market research to break the sub-2% barrier.
Freedom Lend also raised a number of other fixed loans, primarily in the investment space, by up to 70 basis points.
Elsewhere, ING cut investment home loans by between 45 and 50 basis points, while Citi also made a wide variety of changes by up to 30 basis points.
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 27, 2022. View disclaimer.
Some of ING's changes were:
- Inv Mortgage Simplifier P&I 150k-499k: 50 basis point cut to 2.69% p.a. (2.72% p.a. comparison rate*)
- Inv Orange Advantage P&I 150k-499k: 50 basis point cut to 2.74% p.a. (3.08% p.a. comparison rate*)
- Inv Fixed P&I 2 Years: 45 basis point cut to 2.49% p.a. (4.38% p.a. comparison rate*)
Late last month, ING cut the rate of its popular Savings Maximiser account down to 1.50% p.a., after reducing it just two months earlier.
Earlier in the week, Citi cut in excess of 40 home loans by between 5 and 30 basis points. Some of the highlights were:
- Mortgage Plus Inv Standard Fixed IO 5 Years: 30 basis point cut to 2.89% p.a. (3.51% p.a. comparison rate*)
- Mortgage Plus P&I 5 Years 80% 350k+: 20 basis point cut to 2.39% p.a. (2.97% p.a. comparison rate*)
- Standard Fixed P&I 3 Years 80% 350k+: 10 basis point cut to 2.09% p.a. (4.45% p.a. comparison rate*)
A busier week for rate cuts
Last week, neobank 86 400 was the only lender to cut home loan interest rates, but this week activity picked up a bit.
Tic:Toc introduced one of the lowest ever home loans for those with just a 10% deposit, down to 2.19% p.a. (2.20% p.a. comparison rate*)
Another online lender, homeloans.com.au, cut a few rates to investment home loans, with the lowest 'Low Rate' home loan paying P&I with maximum 60% LVR now down 20 basis points to 2.29% p.a. (2.31% p.a. comparison rate*).
Macquarie Credit Union - not to be confused with Macquarie Bank - cut a few fixed loans, with the highlight being the 3 Year Fixed Home Loan for owner occupiers paying P&I, down 18 basis points to 2.79% p.a. (4.06% p.a. comparison rate*)
Another credit union, People's Choice, also cut a few home loans, with the highlight its Basic Variable loan for investors paying P&I with a maximum LVR of 80%, down by 40 basis points to 2.69% p.a. (2.69% p.a. comparison rate*).
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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