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.

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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