The new Smart Home Loan 75, available for owner-occupiers, has had its interest rate for principal and interest repayments lowered from 2.88% p.a. to 2.78% p.a (2.80% p.a. comparison rate*). 

This interest rate cut comes despite there being no reduction in the cash rate from the Reserve Bank of Australia (RBA) this month. 

However, this new interest rate is only available for buyers with an LVR (loan-to-value ratio) of 75% or lower, which means a deposit of least 25% of the property's value. 

This new 2.78% p.a. rate is now one of the lowest variable interest rates on the market for owner-occupiers, competing with the home loans offered by other low-rate lenders such as Athena:   

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
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
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.

Other key aspects of this home loan include: Managing Director Marie Mortimer said those who can afford to pay a deposit of 25% deserve to pay less. 

“Pulling together 25% of the value of a home to bring when you buy or refinance is hard work however you do it,” Ms Mortimer said.

“We think borrowers who have done what it takes to start out with 25% of the home’s value up front should get a lower interest rate.”

A 2.78% interest rate on a $450,000 loan over a 30-year loan term (P&I repayments) could have monthly repayments of $1,844 per month, or about $214,000 in interest over the life of the loan.  

Comparatively, a 2.88% interest rate could have repayments of $1,868 per month ($222,559 in interest overall), meaning it may provide a substantial discount for those who manage a 25% deposit. 

According to Ms Mortimer, a low-rate such as this is possible thanks to an innovative online lending model, which is more efficient than traditional lending. 

“We offer personal service but we do it without the huge overheads of bricks-and mortar-branches that pump up the costs and the interest rates for other home lenders,” Ms Mortimer said.

Who else has cut home loan rates? isn't the only lender to cut interest rates lately, even though there hasn't been an RBA rate cut since October last year. 

A number of lenders have decided to slash interest rates on various home loan products in recent weeks, with some of them being fairly substantial. 

Last week, for example, saw Commonwealth Bank cut a number of fixed-rate loans by up to 50 basis points

Large customer-owned bank CUA also cut fixed-rates by up to 36 basis points, now offering a competitive rate of 2.84% p.a. for a 3-year fixed loan. 

Two of Australia's other major banks, ANZ and Westpac, also cut home loan rates by as much as 50 basis points in January, and with another RBA rate cut expected to occur in April now, interest rates could be set to fall even lower. 

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