A new home loan starting with a 1, ING, Citi also cut rates

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on October 23, 2020
A new home loan starting with a 1, ING, Citi also cut rates

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
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
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Rates correct as of January 21, 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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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.

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