Greater Bank's 'Great Rate' home loan, fixed for one year, now has an advertised rate of 1.69% p.a. (3.49% p.a. comparison rate*).
This is for owner occupier borrowers paying principal and interest (P&I), borrowing a minimum $150,000 with at least an 80% LVR (i.e. a 20% deposit).
Out of 35-plus lenders with a home loan under 2% that Savings.com.au has analysed, Greater Bank's advertised rate is now the lowest in the market.
The advertised rate compares favourably to other fixed and variable home loan products for owner occupiers as seen below, but make sure to check the comparison rate.
| 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 |
The 1.69% per annum rate represents a 20 basis point reduction over Greater Bank's previously-lowest 'Great Rate' home loan.
Fees and extra charges notwithstanding, refinancing to a 1.69% interest rate from the industry-average 2.48% on a $400,000 home loan could save upwards of $57,000 over a 30-year term.
More broadly, Greater Bank cut quite a few other products' interest rates, with the 'Ultimate' home loan also reduced to 1.69% p.a (3.72% p.a. comparison rate*).
It too is a one year fixed loan for owner occupiers, but where it differs is that it includes an offset account.
Greater Bank also cut a variety of other 'Standard', 'Ultimate', and 'Great Rate' home loans for both investors and owner occupiers by between 10 and 20 basis points.
The Newcastle-based bank continues on the 'price war' from last month where UBank cut its three-year fixed 'UHomeLoan' down to 1.75% p.a (2.22% p.a. comparison rate*).