Suncorp's sub-2% home loans became available, with the 'Home Package Plus' loan for owner-occupiers cut by 40 basis points down to 1.89% p.a. (2.94% p.a. comparison rate*).

Borrowers must pay principal and interest (P&I), and fix the loan for two years, with a minimum 20% deposit (80% LVR). 

The equivalent three-year fixed loan was also cut by 50 basis points down to 1.99% p.a. (2.90% p.a. comparison rate*).

Heritage Bank and Adelaide Bank also cut a wide variety of home loans, but still no home loans below a 2% advertised rate.

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

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
5.94% p.a.
5.95% p.a.
$2,383
Principal & Interest
Variable
$0
$0
90%
No hidden feesFree redraw facility
6.04% p.a.
6.04% p.a.
$2,408
Principal & Interest
Variable
$0
$150
70%
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Heritage instead cut its 'Home Advantage' packaged loan by 40 basis points down to 2.19% p.a. (3.16% p.a. comparison rate*).

Owner-occupier borrowers pay P&I and must be willing to fix for two years.

Heritage also cut an incredibly wide range of other loans, both for investors and owner-occupiers, paying P&I and interest-only (IO), on packaged and non-packaged products.

Adelaide Bank's lowest advertised rate is now 2.05% p.a., which applies to a few fixed loans.

Its 'SmartFix' home loan fixed for three years was cut by 39 basis points down to 2.05% p.a. (2.80% p.a. comparison rate*).

A pile-on in the sub-2% game

The latest cuts come after it was revealed ANZ was the only big four bank not to have a home loan under 2%, while also cutting its savings account down to 0.50% p.a.

A few other lenders to cut below the 2% threshold in the past week include:

  • QBANK: 1.89% p.a. (3.37% p.a. comparison rate*) owner-occupier 'special offer' fixed for 3 years.
  • Greater Bank: 1.89% p.a. (3.74% p.a. comparison rate*) owner-occupier discounted rate fixed for 1 year.
  • BankVic: 1.95% p.a. (3.75% p.a. comparison rate*)  'Premium Home' owner-occupied fixed for 2 years.
  • IMB: 1.97% p.a. (2.97% p.a. comparison rate*) owner-occupied fixed for 3 years.

In Savings.com.au's market research, there are now at least 35 lenders offering advertised home loan rates below 2%.

As always, 'special' or 'discounted' offers could end at any time - check with the lender to confirm rates and promotional periods.





Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy