Teachers Mutual, RACQ, Greater Bank & others trim fixed rates below 3%

author-avatar By on August 30, 2019
Teachers Mutual, RACQ, Greater Bank & others trim fixed rates below 3%

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The only way is down for mortgage rates, as home loan interest rates starting with a two become the new norm.

Interest rates have never been so low and the question on many borrower’s lips is “should I fix my rate”?

Some of Australia’s biggest banks plus a few smaller lenders are now offering some of the lowest mortgage rates in history off the back of the most recent 0.25% cash rate cut from the Reserve Bank of Australia (RBA) in July.

But with more cash rate cuts likely to come, home loan interest rates should only continue to fall further.

At the time of writing, Greater Bank currently offers one of the lowest fixed home loan interest rates at 2.79%. RACQ Bank isn’t far behind though, recently cutting rates to 2.80% on its fixed owner-occupier home loans.

Looking for a low variable rate home loan? The table below displays owner-occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES

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 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. Rates correct as of September 27, 2021. View disclaimer.

RACQ Bank mortgage rate cuts

Queensland’s RACQ Bank this week cut fixed home loan rates by up to 39 basis points across its fixed owner-occupier home loans.

  • Choices Package two-year fixed home loans up to $20k have been reduced by 39 basis points to 2.90% p.a (comparison rate 4.40% p.a.)
  • Choices Package three-year fixed home loans up to $20k have been reduced by 19 basis points to 2.80% p.a (comparison rate 4.27% p.a.)
  • Three-year fixed has been reduced by 19 basis points to 2.90% p.a. (comparison rate 4.23% p.a.)

People’s Choice Credit Union mortgage rate cuts

People’s Choice Credit Union cut rates on their fixed products for owner-occupiers this week by up to 95 basis points.

  • One-year fixed for owner-occupiers paying principal and interest (P&I) for loans over $100k have been reduced by 95 basis points to 2.99% p.a. (comparison rate 4.34% p.a.)
  • Two-year fixed for owner-occupiers paying principal and interest (P&I) for loans over $100k have been reduced by 19 basis points to 2.99% p.a. (comparison rate 4.25% p.a.)

Teachers Mutual Bank mortgage rate cuts

Customers of Teachers Mutual Bank can now enjoy fixed home loan rates of 2.98% p.a. (comparison rates differ, see below) with the bank this week slashing rates by 50 basis points.

The changes apply to owner-occupiers paying principal and interest, effective from 29 August 2019.

  • One-year fixed rates have been cut by 50 basis points to 2.98% p.a. (comparison rate 4.62% p.a.)
  • Two-year fixed rates have been cut by 50 basis points to 2.98% p.a. (comparison rate 4.47% p.a.)

Greater Bank mortgage rate cuts

Greater Bank has been busy cutting rates across a number of their fixed rate products by 20 basis points to 2.99% p.a. (comparison rates differ).

The changes are effective from 30 August 2019.

  • Great Rate Discount four-year fixed for a loan size of over $150k has been reduced to 2.99% p.a. (comparison rate 3.71% p.a.)
  • Great Rate Discount five-year fixed for a loan size of over $150k has been reduced to 2.99% p.a. (comparison rate 3.64% p.a.)
  • Great Rate four-year fixed has been reduced to 2.99% p.a. (comparison rate 3.71% p.a.)
  • Great Rate four-year fixed has been reduced to 2.99% p.a. (comparison rate 3.64% p.a.)

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): Great Southern Bank, 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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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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