UBank, Westpac, Teachers Mutual & others chop home loan rates below 3%

author-avatar By
on November 05, 2019
UBank, Westpac, Teachers Mutual & others chop home loan rates below 3%

It’s been a big year for home loan rate cuts, and with the RBA not expected to cut the cash rate again till next year, this week’s cuts by Westpac, UBank, St George, Bank of Melbourne and Teachers Mutual Bank could be among the last we see in 2019.

With three cash rate cuts from the Reserve Bank this year and at least one more expected in the near future, it’s never been a better time to be a borrower.

After cutting rates this week, big four bank Westpac, its subsidiaries St George and Bank of Melbourne, the customer-owned Teachers Mutual, plus NAB-owned online bank UBank are now among the many lenders offering home loans with advertised rates below 3% p.a.

Below are some of the lowest variable home loan rates on offer across the big four banks, customer-owned banks and larger non-banks.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL 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%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO APPLICATION FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO APPLICATION FEES

Yard Home Loan (Principal and Interest) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
UNLIMITED EXTRA REPAYMENTS
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

    Variable
    More details
    EASY DIGITAL APPLICATION
    EASY DIGITAL APPLICATION

    Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

      Variable
      More details
      $0 APPLICATION FEE
      $0 APPLICATION FEE

      Budget Home Loan (Principal and Interest) (LVR < 80%)

        Variable
        More details
        100% FULL OFFSET ACCOUNT
        100% FULL OFFSET ACCOUNT

        Offset Package Home Loan (Principal and Interest) (LVR < 60%)

          Variable
          More details
          LIMITED TIME OFFER
          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services
          LIMITED TIME OFFER

          Smart Booster Home Loan Discounted Variable - 1yr

          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services

          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 June 28, 2022. View disclaimer.



          Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 1 November 2019. View disclaimer.

          Westpac fixed rate cuts

          Westpac has cut a number of its fixed rates and doubled the discount for new borrowers with big deposits.

          Borrowers who have a healthy deposit of at least 30% will receive 10% off the headline rate. Borrowers with smaller deposits won’t receive any discounts. The discount isn’t available to existing customers.

          The discount will apply to owner-occupier and investment loans, variable and fixed loans including package deals.

          The big four bank has also reduced rate cuts for a number of its fixed home loans:

          • Two-year fixed Premier Advantage for borrowers making principal and interest (P&I) repayments with a loan size of $150k with an LVR of 70% has been cut by 5 basis points to 2.88% p.a. (comparison rate 3.75% p.a.)
          • Three-year fixed Premier Advantage for borrowers making principal and interest (P&I) repayments with a loan size of $150k with an LVR of 70% has been cut by 5 basis points to 2.88% p.a. (comparison rate 3.75% p.a.)

          UBank variable rate cuts

          UBank finally materialised the rate cuts it announced earlier in the month following the RBA rate cut, slashing various rates by 25 basis points:

          • Discount offer for owner-occupiers making P&I repayments with a loan size of $200k has been cut by 25 basis points to 2.84% p.a. (comparison rate 2.84% p.a.)
          • Discount Offer for owner-occupiers making P&I repayments with a loan size of $700k+ has been cut by 25 basis points to 2.84% p.a (comparison rate 2.84% p.a.)
          • Discount Offer for owner-occupiers making P&I repayments with a loan size of $100-199k has been cut by 25 basis points to 2.99% p.a. (comparison rate 2.99% p.a.)

          Teachers Mutual Bank rate cuts

          Starting from today, Teachers Mutual Bank is launching a special one-year introductory rate of 2.80% p.a. (3.29% p.a. comparison rate*) for its Classic Home Loan.

          The rate is available for a limited time only to owner-occupiers with a deposit of at least 20%, with a loan size from $250,000 to $1,000,000 from any Teachers Mutual Bank Limited Brand (Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank or UniBank.

          Bank of Melbourne variable rate cuts

          Bank of Melbourne is now offering variable rates as low as 2.94% p.a. (comparison rates differ, see below):

          • Basic Promo Variable for borrowers making P&I repayments with an LVR of 60% has been cut by 15 basis points to 2.94% p.a. (2.96% p.a. comparison rate)
          • Basic Promo Variable for borrowers making P&I repayments with an LVR between 60% and 80% have been cut by 15 basis points to 2.99% p.a. (3.01% p.a. comparison rate)
          • Basic Promo Variable for borrowers making P&I repayments with an LVR between 80% to 95% has been cut by 15 basis points to 3.04% p.a. (3.06% p.a. comparison rate)

          St George variable rate cuts

          Like fellow Westpac Subsidiary Bank of Melbourne, St George is also offering new rates as low as 2.94%, with the bank cutting by 15 basis points:

          • Basic Promo Variable for borrowers making P&I repayments with an LVR of at least 60% has been cut to 2.94% p.a. (2.96% p.a. comparison rate*)
          • Basic Promo Variable for borrowers making P&I repayments with an LVR of 60% to 80% has been cut to 2.99% p.a. (3.01% p.a. comparison rate*)
          • Basic Promo Variable for borrowers making P&I repayments with an LVR of over 80% has been cut to 3.04% p.a. (3.06% p.a. comparison rate*)


          Lender

          Variable
          More details
          UNLIMITED REDRAWSSPECIAL OFFER
          • 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%
          UNLIMITED REDRAWSSPECIAL 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%
          Variable
          More details
          100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
          • No upfront or ongoing fees
          • 100% full offset account
          • Extra repayments + redraw services
          100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

          Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

          • No upfront or ongoing fees
          • 100% full offset account
          • Extra repayments + redraw services
          Variable
          More details
          ZERO APPLICATION FEESFEE FREE OFFSET
          • We lower your rate based off how much you’ve paid down your loan
          • Automatic rate match
          • No upfront or ongoing fees
          • The shorter your loan, the less interest you pay in the long run.
          ZERO APPLICATION FEESFEE FREE OFFSET

          Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

          • We lower your rate based off how much you’ve paid down your loan
          • Automatic rate match
          • No upfront or ongoing fees
          • The shorter your loan, the less interest you pay in the long run.
          Variable
          More details
          AN EASY DIGITAL APPLICATION
          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          AN EASY DIGITAL APPLICATION

          Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          Variable
          More details
          NO APPLICATION FEES
          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          NO APPLICATION FEES

          Yard Home Loan (Principal and Interest) (LVR < 80%)

          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          Variable
          More details
          NO UPFRONT OR ONGOING FEES
          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          NO UPFRONT OR ONGOING FEES

          Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          Variable
          More details
          NO UPFRONT OR ONGOING FEES
          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          NO UPFRONT OR ONGOING FEES

          Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

          • No ongoing fees - None!
          • Unlimited additional repayments
          • Easy online application, find out if you're approved quick!
          • Redraw- Access your additional payments if you need them
          • Use the app to get loan insights to help you pay off your home loan faster
          Variable
          More details
          UNLIMITED EXTRA REPAYMENTS
          UNLIMITED EXTRA REPAYMENTS

          Basic Home Loan (Principal and Interest) (LVR < 60%)

            Variable
            More details
            EASY DIGITAL APPLICATION
            EASY DIGITAL APPLICATION

            Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

              Variable
              More details
              $0 APPLICATION FEE
              $0 APPLICATION FEE

              Budget Home Loan (Principal and Interest) (LVR < 80%)

                Variable
                More details
                100% FULL OFFSET ACCOUNT
                100% FULL OFFSET ACCOUNT

                Offset Package Home Loan (Principal and Interest) (LVR < 60%)

                  Variable
                  More details
                  LIMITED TIME OFFER
                  • Fast turnaround times, can meet 30-day settlement
                  • No ongoing or monthly fees, add offset for 0.10%
                  • Extra repayments + redraw services
                  LIMITED TIME OFFER

                  Smart Booster Home Loan Discounted Variable - 1yr

                  • Fast turnaround times, can meet 30-day settlement
                  • No ongoing or monthly fees, add offset for 0.10%
                  • Extra repayments + redraw services

                  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 June 28, 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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                  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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