The biggest cuts were to Freedom Lend's four and five-year fixed interest-only (IO) home loans, cut by 57 basis points. 

Both of them have an advertised rate of 2.77% p.a, and a comparison rate of 3.12% p.a.*

Borrowers must have a minimum 20% deposit to qualify for this loan (an 80% LVR). 

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

Update resultsUpdate
Filters
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
6.24% p.a.
6.29% p.a.
$2,460
Principal & Interest
Fixed
$0
$0
90%
Free Redraw Facility
6.09% p.a.
6.19% p.a.
$2,421
Principal & Interest
Fixed
$0
$350
80%
6.69% p.a.
7.77% p.a.
$2,578
Principal & Interest
Fixed
$395
$0
80%
6.69% p.a.
7.19% p.a.
$2,578
Principal & Interest
Fixed
$0
$160
80%
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.

Freedom Lend also cut a wide variety of other loans by between 2 and 52 basis points.

A couple of noteworthy variable loans to get a haircut were:

  • Investment Freedom Variable P&I 70%: 27 basis point cut to 2.27% p.a. (2.27% p.a. comparison rate*)
  • Freedom Variable IO 70%: 32 basis point cut to 2.27% p.a. (2.33% p.a. comparison rate*)

Meanwhile, ME Bank cut a variety of packaged loans by between 15 and 20 basis points, including:

  • Member Package Flexible OO P&I 80%: 20 basis point cut to 2.49% p.a. (2.95% p.a. comparison rate*)
  • Member Package Flexible Inv P&I 80%: 15 basis point cut to 2.98% p.a. (3.43% p.a. comparison rate*)

The important caveat with these home loans is that it's for a minimum borrowing amount of $700,000, which, implying you have a 20% deposit equates to a property price of $875,000. 

For borrowers borrowing more modest amounts, the changes look similar on the surface, but keep an eye on that comparison rate:

  • Member Package Flexible OO P&I 80%: 15 basis point cut to 2.59% p.a. (3.05% p.a. comparison rate*)
  • Member Package Flexible Inv P&I 80%: 15 basis point cut to 2.98% p.a. (3.43% p.a. comparison rate*)

These home loans with the applicable comparison rate are for borrowed amounts between $400,000 and $700,000. 

These are variable rates, but also keep in mind that ME Bank calls some fixed home loans 'Flexible' loans too.

The 'Member Package' is slightly different from the traditional definition of a packaged home loan, which bundles credit cards and other products.

Instead, ME's 'package' is a flexible add-on that charges $395 per year, and in return borrowers receive no valuation costs, a lower variable interest rate, no fee for fixing, no fee for splitting, and no fee for topping up.

Ordinarily these features would cost $200 to $250 a pop. 

Photo by Patrick Perkins on Unsplash



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