Launched today,'s new Smart Booster Discounted Variable Home Loan has a 1.99% p.a. introductory variable rate (2.55% p.a. comparison rate*).

The 1.99% p.a. interest rate applies for one year before reverting to a rate of 2.57% p.a.

Available to homebuyers and refinancers with at least a 20% deposit or equity, the new mortgage is considered to be Australia's first variable rate home loan with an interest rate under 2%, albeit an introductory one.

It's an offer which throws down the gauntlet to other lenders in Australia amid an increasingly competitive home loan market.  

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.

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 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
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. Managing Director Marie Mortimer said she was excited about what the new rate could mean for Australian borrowers. 

“This is the lowest variable rate we have ever offered,” Ms Mortimer said.

“This is a great opportunity for Australians to boost their equity and own their own home sooner.

“Borrowers who are considering switching to a lower rate should take the opportunity to reassess their loan provider and potentially refinance."

The online lender also launched a two year discounted variable rate of 2.09% p.a.(2.71% p.a comparison rate*).

Both products are limited to a maximum loan amount of $1,000,000 and a maximum loan-to-value ratio (LVR) of 80%.  

Only a fortnight ago, made sweeping changes to its existing variable and fixed products, cutting its two-year fixed rate for owner-occupiers paying principal and interest to just 2.29% p.a. (2.98% p.a. comparison rate).

Ms Mortimer said refinancing was much easier than people realised, especially with the wealth of online lenders in Australia. 

“Many people are keen to leave the big banks and are surprised to discover how easy it is to refinance and the great deals that are out there with online lenders,” she said.

“Many of our customers tell us that they delayed refinancing because they thought it would be a big hassle but it turned out to be much simpler than they expected and well worth the time invested.” may be the first lender to offer a variable rate home loan under 2%, but it's not the first time a home loan has started with a 1. 

At the end of June, Tasmanian-based Bank of Us offered Tasmanian residents fixed-rate home loans for up to three years for 1.99% p.a.

But while Bank of Us' rate will be locked in for fixed term for,'s rate will not.

Being a variable rate there is the possibility it could increase or decrease during the introductory period.

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