Two lenders introduce new sub-2% home loans

Photo by Josh Spires (dronenr) on Unsplash

Easy Street Financial Services and Community First Credit Union introduced home loans with advertised rates below 2.00% p.a, but each are slightly different.

Easy Street and Community First join three others in the sub-2% rate war, however both lenders differ slightly in what's on offer.

• Easy Street: Variable home loan, maximum LVR of 80%, minimum 750k loan, 1.95% p.a. (1.99% p.a. comparison rate*)
• Community First: two-year intro 'Accelerator Package' rate, minimum 100k loan, 1.99% p.a. (3.25% p.a. comparison rate*)

Easy Street's loan requires a maximum LVR of 80%, meaning borrowers will need a 20%-or-greater deposit, and the minimum loan size is $750,000.

With Community First there is a bit of flexibility - the variable loan has a maximum LVR of 80%, while the two-year fixed rate has a maximum LVR of 95%.

The variable rate is an intro rate for two years, and both lenders' rates are for owner-occupiers. 

Both lenders are offering their sub-2% home loans as 'special offers' that are only applicable for those who apply and get approved by 31 October 2020.

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.

An Easy Street spokesperson told Savings.com.au that the low comparison rate allows larger borrowers to "cut through a lot of the noise".

"We have higher than anticipated liquidity, [and] the opportunity to provide consumers with a great low rate home loan," they said.

"We know that larger mortgage holders stand to make large savings when switching to a lower rate and we just wanted to let the market know that we can do bigger loans."

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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 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 2019. 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.

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.

*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.

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