Greater Bank introduces new 'lowest ever' home loan

author-avatar By on February 10, 2021
Greater Bank introduces new 'lowest ever' home loan

Today, Greater Bank introduced a new home loan under 2% that is the lowest in Savings.com.au's market research.

Greater Bank's 'Great Rate' home loan, fixed for one year, now has an advertised rate of 1.69% p.a. (3.49% p.a. comparison rate*). 

This is for owner occupier borrowers paying principal and interest (P&I), borrowing a minimum $150,000 with at least an 80% LVR (i.e. a 20% deposit).

Out of 35-plus lenders with a home loan under 2% that Savings.com.au has analysed, Greater Bank's advertised rate is now the lowest in the market.

The advertised rate compares favourably to other fixed and variable home loan products for owner occupiers as seen below, but make sure to check the comparison rate.

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.

The 1.69% per annum rate represents a 20 basis point reduction over Greater Bank's previously-lowest 'Great Rate' home loan.

Fees and extra charges notwithstanding, refinancing to a 1.69% interest rate from the industry-average 2.48% on a $400,000 home loan could save upwards of $57,000 over a 30-year term.

More broadly, Greater Bank cut quite a few other products' interest rates, with the 'Ultimate' home loan also reduced to 1.69% p.a (3.72% p.a. comparison rate*).

It too is a one year fixed loan for owner occupiers, but where it differs is that it includes an offset account.

Greater Bank also cut a variety of other 'Standard', 'Ultimate', and 'Great Rate' home loans for both investors and owner occupiers by between 10 and 20 basis points.

The Newcastle-based bank continues on the 'price war' from last month where UBank cut its three-year fixed 'UHomeLoan' down to 1.75% p.a (2.22% p.a. comparison rate*).


Photo by Chelsea Pridham on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

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

*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.

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author-avatar
Harrison is a Senior Finance Journalist, and joined Savings in 2020. Prior to joining Savings, 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 informing readers on the strings being pulled in high-up places and how it affects everyday Australians.

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