A new home loan starting with a 1, ING, Citi also cut rates
Photo by kevin turcios on Unsplash
The 'Freedom Fixed' loan is 1.99% p.a. (2.43% p.a. comparison rate*), and makes it the 14th lender in Savings.com.au's market research to break the sub-2% barrier.
Freedom Lend also raised a number of other fixed loans, primarily in the investment space, by up to 70 basis points.
Elsewhere, ING cut investment home loans by between 45 and 50 basis points, while Citi also made a wide variety of changes by up to 30 basis points.
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.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
Some of ING's changes were:
- Inv Mortgage Simplifier P&I 150k-499k: 50 basis point cut to 2.69% p.a. (2.72% p.a. comparison rate*)
- Inv Orange Advantage P&I 150k-499k: 50 basis point cut to 2.74% p.a. (3.08% p.a. comparison rate*)
- Inv Fixed P&I 2 Years: 45 basis point cut to 2.49% p.a. (4.38% p.a. comparison rate*)
Late last month, ING cut the rate of its popular Savings Maximiser account down to 1.50% p.a., after reducing it just two months earlier.
Earlier in the week, Citi cut in excess of 40 home loans by between 5 and 30 basis points. Some of the highlights were:
- Mortgage Plus Inv Standard Fixed IO 5 Years: 30 basis point cut to 2.89% p.a. (3.51% p.a. comparison rate*)
- Mortgage Plus P&I 5 Years 80% 350k+: 20 basis point cut to 2.39% p.a. (2.97% p.a. comparison rate*)
- Standard Fixed P&I 3 Years 80% 350k+: 10 basis point cut to 2.09% p.a. (4.45% p.a. comparison rate*)
A busier week for rate cuts
Last week, neobank 86 400 was the only lender to cut home loan interest rates, but this week activity picked up a bit.
Tic:Toc introduced one of the lowest ever home loans for those with just a 10% deposit, down to 2.19% p.a. (2.20% p.a. comparison rate*)
Another online lender, homeloans.com.au, cut a few rates to investment home loans, with the lowest 'Low Rate' home loan paying P&I with maximum 60% LVR now down 20 basis points to 2.29% p.a. (2.31% p.a. comparison rate*).
Macquarie Credit Union - not to be confused with Macquarie Bank - cut a few fixed loans, with the highlight being the 3 Year Fixed Home Loan for owner occupiers paying P&I, down 18 basis points to 2.79% p.a. (4.06% p.a. comparison rate*)
Another credit union, People's Choice, also cut a few home loans, with the highlight its Basic Variable loan for investors paying P&I with a maximum LVR of 80%, down by 40 basis points to 2.69% p.a. (2.69% p.a. comparison rate*).