Bank of Us matches low-rate home loan offer

In the latest home loan news, Bank of Us matched a home loan interest rate which could be Australia's lowest ever.

On Thursday Tasmania-based Bank of Us cut its 'FlexiDiscount' one-year fixed-rate home loan by 20 basis points.

For owner occupier borrowers with 80% LVR, the advertised rate is now 1.59% p.a. (2.43% p.a. comparison rate*).

This is a limited time offer for Tasmanian residents only, open to new lending through 10 December.

This matches Greater Bank's lowest advertised rate announced just over a week ago.

However, Greater Bank's home loan rate is fixed for two years, and features a slightly lower comparison rate.

Bank of Us also reduced its variable FlexiDiscount offer for owner occupiers by 10 basis points down to 2.09% p.a. (2.11% p.a. comparison rate*).

Some other customer-owned banks adjusted home loan rates in the past week.

On Friday, Teachers Mutual and its subsidiary Firefighters Mutual increased interest rates on a number of home loans, including:

• Your Way P&I Fixed 4 Years: Up 20 basis points to 2.49% p.a. (3.73% p.a. comparison rate*)
• Your Way P&I Fixed 5 Years: Up 20 basis points to 2.94% p.a. (3.79% p.a. comparison rate*)

Similar hikes were also applied to its investment product lines.

Earlier, Great Southern Bank made a variety of cuts, most notably:

• Basic Variable P&I 80%: 10 basis point cut to 2.39% p.a. (2.44% p.a. comparison rate*)
• Investment Fixed P&I 1 Year: 30 basis point cut to 2.39% p.a. (4.07% p.a. comparison rate*)

It also increased interest rates by 5 basis points on its owner occupied home loans fixed for two and three years.

Qudos Bank reduced rates on three home loans for owner occupiers:

• No Frills P&I 80%: 5 basis point cut to 2.39% p.a. (2.39% p.a. comparison rate*)
• Fixed P&I 80% 1 Year: 10 basis point cut to 1.89% p.a. (2.71% p.a. comparison rate*)
• Fixed P&I 80% 2 Years: 10 basis point cut to 1.89% p.a. (2.64% p.a. comparison rate*)

Hume Bank also moved rates on a wide range of home loans by 5 basis points, most notably:

• myBlue P&I Fixed 1 Year 90%: Up to 1.94% p.a. (2.40% p.a. comparison rate*)
• myBlue Investment P&I Fixed 2 Years 60%: Down to 2.29% p.a. (2.50% p.a. comparison rate*)

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

Product Features

• 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%

Monthly repayments:$1,449

1.85%Advertised Rate (p.a.)

2.21%Comparison Rate (p.a.)

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