Photo by Lochlainn Riordan on Unsplash
In the past week, Suncorp and Horizon Bank cut fixed home loan rates for both owner occupiers and investors by up to 30 basis points.
The biggest cut belongs to Horizon Bank, which cut its five-year fixed loan, for both owner-occupiers and investors by 30 basis points. The key details are:
- Owner Occupier Fixed 5 Years: Down to 2.99% p.a. (3.33% p.a. comparison rate*)
- Investor Fixed 5 Years: Down to 3.24% p.a. (3.58% p.a. comparison rate*)
Meanwhile, Suncorp's biggest cuts were for its fixed loans for investors. Some key highlights were:
- Home Package Plus Investment Fixed 90% 2 Years: 20 basis point cut to 2.79% p.a. (3.65% p.a. comparison rate*)
- Home Package Plus Investment Fixed 80% 2 Years: 20 basis point cut to 2.59% p.a. (3.45% p.a. comparison rate*)
Note both of these lenders' cuts are for borrowers paying principal and interest (P&I), and Suncorp's cuts are for its packaged loans.
Buying a home or looking to refinance? The table below features home loans with some of the lowest fixed interest rates on the market for owner occupiers.
Lender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed | More details | ||||||||||||
| No ongoing feesFree redraw facility | |||||||||||||
Live-in Fixed Loan (Principal and Interest) 1 Year | |||||||||||||
| Fixed | More details | ||||||||||||
| NO UPFRONT OR ONGOING FEES | |||||||||||||
Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years | |||||||||||||
| Fixed | More details | ||||||||||||
Fixed Rate Home Loan (Principal and Interest) 3 Years | |||||||||||||
| Fixed | More details | ||||||||||||
Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%) | |||||||||||||
| Fixed | More details | ||||||||||||
Fixed Rate Home Loan (Interest Only) 4 Years (LVR > 80%) | |||||||||||||
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 May 25, 2022. View disclaimer.
As seen above, borrowers could get a lower rate with a bigger deposit.
This 'rate tiering' is a growing trend, and other lenders such as Athena and 86 400 have introduced automatic cuts for borrowers who pay down their mortgage.
Meanwhile, on Monday, HSBC also cut a variety of home loans as a 'promotional offer' by up to 16 basis points.
The home loan to get the biggest cut was the Premier Home Smart Variable P&I 80-90%, with a 16 basis point cut to 2.79% p.a. (3.25% p.a. comparison rate*)
This is a packaged home loan and has a promotional rate for borrowers who apply by 30 November 2020.
Reduce's 'lowest ever' home loan
Earlier in the week, Reduce Home Loans introduced its first sub-2% home loan, The Reduce 'Rate Crusher' 1 Year Fixed P&I <80% at 1.90% p.a. (2.39% p.a. comparison rate*)
Initially, this was offered as an introductory variable rate for one year, but Reduce then changed it to a one-year fixed loan.
On the surface, there are effectively no differences, however, variable rates can change at any time, while fixed rates can be subject to break fees if a borrower decides to refinance.
There could also be other fees for paying down the loan early.
In Savings.com.au's market research, this new rate is the lowest on the market, and makes Reduce the ninth lender to introduce a home loan starting with a 1.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
Lender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
| ||||||||||||
Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
| |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDAN EASY DIGITAL APPLICATION | Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
| ||||||||||||
Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
| |||||||||||||
| Variable | More details | ||||||||||||
| FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
| ||||||||||||
Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
| |||||||||||||
| Variable | More details | ||||||||||||
| NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY. | Variable Home Loan (Principal and Interest)
| ||||||||||||
Variable Home Loan (Principal and Interest)
| |||||||||||||
- 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%
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 May 25, 2022. View disclaimer.
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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