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.
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.

Smart Booster Home Loan
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
Advertised
Rate (p.a.)
1.99%
Comparison
Rate (p.a.)
2.47%
Product Features
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
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%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
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): Credit Union Australia, 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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