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.

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.

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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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