Heritage, Suncorp, and Adelaide Bank slash home loan rates

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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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL 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%
Variable
More details
ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
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
  • The shorter your loan, the less interest you pay in the long run.
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • 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
Variable
More details
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Variable Owner Occupied, Principal and Interest (LVR < 80%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
Variable
More details
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Home Value Home Loan (Principal and Interest) (LVR < 70%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
Variable
More details
100% FULL OFFSET ACCOUNT
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
100% FULL OFFSET ACCOUNT

Ocean Owner Occupied (Amounts < $1m, LVR < 60%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 July 3, 2022. 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. 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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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