Heritage, Suncorp, and Adelaide Bank slash home loan rates

author-avatar By on November 20, 2020
Heritage, Suncorp, and Adelaide Bank slash home loan rates

Photo by Jana Sabeth on Unsplash

Today some announced rate cuts came into effect, with Heritage Bank, Suncorp, and Adelaide Bank cutting home loans cut rates by up to 50 basis points.

Suncorp's sub-2% home loans became available, with the 'Home Package Plus' loan for owner-occupiers cut by 40 basis points down to 1.89% p.a. (2.94% p.a. comparison rate*).

Borrowers must pay principal and interest (P&I), and fix the loan for two years, with a minimum 20% deposit (80% LVR). 

The equivalent three-year fixed loan was also cut by 50 basis points down to 1.99% p.a. (2.90% p.a. comparison rate*).

Heritage Bank and Adelaide Bank also cut a wide variety of home loans, but still no home loans below a 2% advertised rate.

Buying a home or looking to refinance? The table below features home loans with some of the lowest fixed and 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
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
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
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.^
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

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

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

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

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

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

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

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

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
FixedMore details

Total Home Loan Package Home Loan Fixed Special 2 Years (LVR < 60%)

FixedMore details

Package Fixed Home Loan (Principal and Interest) 2 Years (LVR < 80%)

FixedMore details

Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

FixedMore details

Basic Home Loan Fixed 3 Year (LVR < 60%)

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 October 27, 2021. View disclaimer.

Heritage instead cut its 'Home Advantage' packaged loan by 40 basis points down to 2.19% p.a. (3.16% p.a. comparison rate*).

Owner-occupier borrowers pay P&I and must be willing to fix for two years.

Heritage also cut an incredibly wide range of other loans, both for investors and owner-occupiers, paying P&I and interest-only (IO), on packaged and non-packaged products.

Adelaide Bank's lowest advertised rate is now 2.05% p.a., which applies to a few fixed loans.

Its 'SmartFix' home loan fixed for three years was cut by 39 basis points down to 2.05% p.a. (2.80% p.a. comparison rate*).

A pile-on in the sub-2% game

The latest cuts come after it was revealed ANZ was the only big four bank not to have a home loan under 2%, while also cutting its savings account down to 0.50% p.a.

A few other lenders to cut below the 2% threshold in the past week include:

  • QBANK: 1.89% p.a. (3.37% p.a. comparison rate*) owner-occupier 'special offer' fixed for 3 years.
  • Greater Bank: 1.89% p.a. (3.74% p.a. comparison rate*) owner-occupier discounted rate fixed for 1 year.
  • BankVic: 1.95% p.a. (3.75% p.a. comparison rate*)  'Premium Home' owner-occupied fixed for 2 years.
  • IMB: 1.97% p.a. (2.97% p.a. comparison rate*) owner-occupied fixed for 3 years.

In Savings.com.au's market research, there are now at least 35 lenders offering advertised home loan rates below 2%.

As always, 'special' or 'discounted' offers could end at any time - check with the lender to confirm rates and promotional periods.


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.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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

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