Bank of Us matches low-rate home loan offer

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on October 04, 2021
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.

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
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 July 3, 2022. View disclaimer.


Photo by Zachary Ferguson on Unsplash

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
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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