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The mortgage market has seen some significant cuts in fixed rates over recent months with the big banks also getting in on the action.
One of the main drivers is the availability of cheaper funds on global markets as interest rates in other economies head lower (although not in the US or Australia).
ANZ remains the outlier of the big four banks with no recent movement in its advertised fixed rates.
NAB, Macquarie, Westpac, and CommBank have all dropped their fixed rate loans, as well as a flurry of smaller lenders over the past couple of months.
BoQ joins the fray
Australia's sixth-largest home lender by value Bank of Queensland has now taken its three-, four-, and five-year fixed rates lower with its discount rates under the 6% mark.
Its best new rate is its 5.69% p.a. discount rate (6.31% p.a. comparison rate*) for new owner occupiers with a loan-to-value ratio (LVR) <80% making principal and interest (P&I) payments fixed for three years.
It's also offering the same rate for lower deposit, LVR 80-90% loans, although these come with lenders mortgage insurance (LMI).
The rate is among the lowest three-year fixed rates on the market, although not quite as low as Macquarie Bank's latest 5.59% p.a. (6.01% p.a. comparison rate).
Here's some of BoQ's new fixed rates for owner occupiers paying P&I:
| Product | Change (%) | New rate | Comparison rate* |
|---|---|---|---|
| 3 years fixed | -0.05 | 6.04% p.a. | 6.41% p.a. |
| 3-year discount rate LVR<90% with LMI | -0.05 | 5.69% p.a. | 6.31% p.a. |
| 4 years fixed | -0.15 | 6.34% p.a. | 6.49% p.a. |
| 4-year discount rate LVR<90% with LMI | -0.15 | 5.99% p.a. | 6.37% p.a. |
| 5 years fixed | -0.15 | 6.34% p.a. | 6.49% p.a. |
| 5-year discount rate LVR<90% with LMI | -0.15 | 5.99% p.a. | 6.34% p.a. |
BoQ's discounted rates are offered for a limited time to new-to-bank borrowers only.
Loans.com.au meets market challenge
The online non-bank lender has matched BoQ's three-year fixed rate, taking a notable 55 basis points of its owner occupier P&I loan to 5.69% p.a. (6.16% p.a. comparison rate*).
The loans.com.au special rate is available to borrowers with a 10% deposit, can be split with a variable rate loan, and comes with no monthly or ongoing fees.
In the interest of full disclosure both loans.com.au and Savings.com.au are part of the Firstmac Group.
Credit Union SA takes 3-year rate lower
The credit union has shaved 10 basis points off its three-year fixed home loan package rate to 5.89% p.a. (6.65% p.a. comparison rate*) for owner occupiers making P&I repayments.
It will also apply the rate to loans with as low as a 3% deposit but will include LMI added to the home loan amount.
Credit Union SA's home loan packages come with an annual fee of $395.
The credit union has also dropped up to 25 basis points off a selection of two- and three-year fixed home loans for occupiers and investors making P&I and interest only (IO) repayments.
Queensland Country Bank's also lowers 3-year rate
Finally, Queensland Country Bank has taken 10 basis points off its three-year fixed rate to 5.89% p.a. (6.49% comparison rate*) for owner occupiers signing up to its Ultimate Home Loan Package.
The special offer rate is for borrowers with <80% LVR making P&I or IO repayments (6.47% p.a. comparison rate* for IO).
Meantime, fixed rate package loans for investors have increased by up to 20 basis points.
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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 | 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 |
