Well Home Loans now offers what might be Australia’s lowest home loan rate

Emma Duffy By on September 6, 2019

Photo by Tarutoa on Unsplash

Non-bank lender Well Home Loans is shaking up the mortgage market, cutting its fixed home loan rates to the lowest rate yet – at 2.74%.

The online lender has cut rates on its Well Balanced mortgage for owner-occupiers.

The two-year fixed rate has been slashed to 2.74% p.a. (comparison rate 2.96% p.a.) while the three-year fixed rate has also been reduced to 2.74% p.a. (comparison rate 2.94% p.a.).

Those could be the lowest fixed home loan rates in the country, beating Greater Bank’s fixed rate of 2.79% p.a. (at the time of writing).

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. 

Provider Ad rate
Comp rate*
Purchase or Refi, P&I 80% Smart Home Loan 2.88% 2.90% $1,660 More details
Discount Variable 80% 3.07% 3.09% $1,702 More details
Base Variable Rate Special P&I 3.20% 3.20% $1,730 More details
Ad rate
Comp rate*
Purchase or Refi, P&I 80% Smart Home Loan
2.88% 2.90% $1,660
More details
Discount Variable 80%
3.07% 3.09% $1,702
More details
Base Variable Rate Special P&I
3.20% 3.20% $1,730
More details

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 18 November 2019. View disclaimer.

Despite the Reserve Bank opting to keep the cash rate steady at its most recent meeting, that hasn’t stopped lenders from cutting their home loan rates.

With more RBA rate cuts expected to come, these are likely not the last cuts to home loan interest rates we can expect to see.

ME Bank home loan rate cuts

ME Bank has hopped on board the bandwagon, trimming rates on its fixed and variable home loans for investors and owner-occupiers, effective from today.

The discounts are only available for new customers and the $395 package fee still applies.

The bank’s Flexible Home Loan with Member Package will now have a variable rate of 3.29% p.a. (comparison rate 3.73% p.a.) which the lender has said is its “most competitive advertised variable rate ever”.

That rate is only on offer for owner-occupiers paying principal and interest with an LVR of 80% or lower and a loan amount of $700k or more.

Owner-occupiers borrowing $400k making principal and interest repayments with an LVR between 80% and 90% can enjoy a variable rate of 3.57% p.a. (comparison rate 4.00% p.a.).

Fixed-rate borrowers haven’t been left out either. New customers can score three-year fixed rates from 3.48% p.a. across its investment loans (comparison rates differ).

Investors making principal and interest repayments with an LVR of 90% or below can enjoy a fixed rate of 3.48% p.a. (comparison rate 4.25% p.a.).

If you’re an investor making interest-only repayments with an LVR of 80% or under, a fixed rate of 3.69% p.a. will now apply to your loan (comparison rate 4.18% p.a.).

Heritage Bank home loan rate cuts

Heritage Bank has joined in on the action, cutting rates on its fixed home loans for owner-occupiers by up to 0.30%, effective from today for new customers only.

The bank’s Home Advantage loan will now have a fixed rate of up to 3.49% p.a. (comparison rates differ).

The two-year fixed rate has been cut to 3.09% p.a. (comparison rate 3.72% p.a.) while the three-year fixed rate has been cut to a competitive 2.99% p.a. (comparison rate 3.67% p.a.). The five-year fixed rate has been trimmed to 3.49% p.a. (comparison rate 3.81% p.a.).


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 2018. 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 2019) 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.

In the interests of full disclosure, Savings.com.au 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 includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.

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Emma Duffy
Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand.
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