The West Australian-based P&N Bank has slashed its fixed home loan rates, positioning itself at the bottom of the market.
Its lowest rate of 4.65% p.a. (5.48% p.a. comparison rate*) is being offered to owner occupiers with less than 80% loan-to-value ratio (LVR) and fixing for one year.
Those choosing to fix for two years can lock in at 4.75% p.a. (5.42% p.a. comparison rate*).
The rates jump for those with LVRs up to 95% p.a. but remain competitive, as outlined below:
| Loan | Rate change (%) | New rate | Comparison rate* |
| 1 year <80% LVR | -0.69 | 4.65% p.a. | 5.48% p.a. |
| 2 year <80% LVR | -0.24 | 4.75% p.a. | 5.42% p.a. |
| 1 year 80-95% LVR | -0.69 | 4.75% p.a. | 5.49% p.a. |
| 2 year 80-95% LVR | -0.24 | 4.85% p.a. | 5.44% p.a. |
See also: P&N Bank home loan review: 2025
The two top rates on the table also apply to P&N's east coast brand BCU with slightly lower comparison rates (5.43% p.a. - 1 year; 5.37% p.a. - 2 years).
BCU allows borrowers to borrow up to 95% of property value although lenders mortgage insurance (LMI) may apply.
How do the interest rates compare?
The new fixed rates are at the bottom of the market, likely designed to lure borrowers waiting to see how low interest rates will go in the current cutting cycle.
The Reserve Bank cash rate stands at 3.60% after cuts in February, May, and August.
The August cut has seen some home lenders drop their home loan rates below the 5.00% p.a. mark.
See also: Which home loans offer interest rates below 5% p.a.?
The vast majority of these are on fixed rate home loans although there are rare variable rates of 4.99% p.a. with small lenders.
Those locking in a fixed rate of 4.65% p.a. for one year could feel confident variable home loan rates would likely not fall that low during the time period.
This is because many of the most competitive variable rates are in the low-to-mid 5% range, the difference being three or four more standard-sized RBA rate cuts' worth.
Many economists forecast only one or two more rate cuts over the next 12 months or so.
How low will the cash rate go?
The consensus among Australia's big banks is that there will be one more 25-basis point cash rate cut to 3.35% p.a. in November.
This looks set to push more variable rates below the 5.00% p.a. mark but likely not as low at 4.65% p.a. on the back of one rate cut.
The Reserve Bank monetary policy board is due to meet next on 29-30 September with markets currently rating the chance of another cash rate cut at just 14%.
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Buying a home or looking to refinance? The table below features home loans with some of the lowest 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 |
