Photo by Maxwell Dugan on Unsplash
Greater Bank's two home loans have an advertised rate of 1.99% p.a. and are fixed for one year.
However, the 'Great Rate' home loan has a comparison rate of 3.52% p.a., while the Ultimate Home Loan has a comparison rate of 3.74% p.a.
The 'Ultimate Home Loan' is a packaged product and includes flexible repayments, an offset account, and a waived annual credit card fee.
The new rates are for new and existing borrowers with a maximum LVR of 80%, borrowing a minimum of $150,000.
In Savings.com.au's market research, Greater Bank is the tenth lender to introduce a home loan beginning with a '1'.
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 |
Greater Bank CEO Scott Morgan credits the record low Reserve Bank cash rate and the term funding facility for allowing the lender to introduce the home loans.
“It’s hard to believe that the market now offers a fixed-term rate with a ‘1’ at the start, such is the time we are living," he said.
"What this does is provide an opportunity for new and existing customers to look at their current financial position and consider fixing their home loan.
“This move will ensure that Greater Bank remains very competitive against the industry’s major players in this fixed loan market."
The majority of the home loans beginning with a '1' tend to either be variable or fixed for one year.
While variable rates can change at any time at the discretion of the lender or due to market forces, fixed home loans provide certainty for a set period.
However, fixed loans can also attract break fees if a borrower decides to refinance before their fixed term is over.