31 lenders offering home loan rates under 2 per cent

A record 31 lenders are offering, or set to offer, at least one mortgage rate under 2 per cent – almost triple the number before last week’s RBA cut.

Already 17 of these lenders have advertised rates under 2 per cent, while a further 14 lenders will make their new rates available in the coming days.

RateCity.com.au database analysis:

• 41 lenders have so far announced cuts to rates since last Tuesday.
• Of these, just 5 lenders have passed on variable rate cuts to their existing customers (see list below).
• 1.77% is the lowest variable rate on the market.
• 1.88% will be the lowest fixed rate on the market (2-years), effective from 19 November.
• 31 lenders are set to offer at least one fixed or variable rate under 2%.
• Australia’s three largest banks now have fixed rates under 2% (CBA, Westpac and NAB).

Company	Product Green Home Loan Real Time Rating™ 4.00 / 5 Winner of Best Green Home Loan, RateCity Gold Awards 2022	Interest Rate 2.13 % p.a Variable	Comparison Rate* 2.55 % p.a	Repayment $1,291 monthly	Real Time Rating™ 4.00 / 5	Go to site View Now	Winner of Best Green Home Loan, RateCity Gold Awards 2022
Company	Product Variable Home Loan Real Time Rating™ 4.07 / 5	Interest Rate 2.09 % p.a Variable	Comparison Rate* 1.99 % p.a	Repayment $1,285 monthly	Real Time Rating™ 4.07 / 5	Go to site View Now	special Receive $5,000 AUD cashback when you refinance your existing home loan ~ Ends in about 1 month
Company	Product Smart Booster Home Loan Discounted Variable - 2yr Real Time Rating™ 3.31 / 5	Interest Rate 2.10 % p.a Intro 24 months	Comparison Rate* 2.46 % p.a	Repayment $1,346 monthly	Real Time Rating™ 3.31 / 5	Go to site View Now
Company	Product Low Rate Home Loan - Prime (Owner Occupied) (Principal and Interest) Real Time Rating™ 3.93 / 5 Winner of Best Refinance Home Loan, RateCity Gold Awards 2022	Interest Rate 2.14 % p.a Variable	Comparison Rate* 2.14 % p.a	Repayment $1,292 monthly	Real Time Rating™ 3.93 / 5	Go to site View Now	Winner of Best Refinance Home Loan, RateCity Gold Awards 2022
Company	Product Low Rate Home Loan - Prime (Owner Occupied) (Interest Only) Real Time Rating™ 2.81 / 5	Interest Rate 2.44 % p.a Variable	Comparison Rate* 2.24 % p.a	Repayment $610 monthly	Real Time Rating™ 2.81 / 5	Go to site View Now

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Product data updated on 20 May 2022

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Homeowners can now get 1-5 year fixed loans for under 2%

In an historic first, homeowners can now sign up for a one, two, three, four and five-year fixed loan –for under 2 per cent.

Locking in a rate is becoming an increasingly popular option for Australian mortgage holders, with CBA telling RateCity that around 40 per cent of new loans were fixed, while Westpac has said 28 per cent of their entire loan book is on a fixed rate.

Lowest owner-occupier rates on RateCity.com.au  - Note some rates will become available later this month.

Source: RateCity.com.au   Home loans above are available Australia-wide. LVR restrictions may apply. HSBC rate available from 19/11. UBank rate available 13/11. Newcastle Permanent rate available 11/11.

Big four banks – lowest owner-occupier rates 

Source: RateCity.com.au  Note: Westpac's rates are for a loan to value ratio of 70%.

RateCity.com.au research director Sally Tindall said: “At the beginning of this year, no one would have predicted there would be more than 30 lenders with rates under 2 per cent.”

“It’s no longer just online lenders with low rates. The bigger banks are now starting to steal their thunder offering up fixed rates under 2 per cent,” she said.

“For the average borrower, refinancing to a low fixed rate could save them thousands of dollars a year but locking in is not for everyone.

“Don’t rush into fixing. Make sure you’re happy with the rate but also with the terms and conditions that come with a fixed rate.

“Split loans can be a good option for people looking to take advantage of the record low fixed rates but still want to keep their offset or make extra repayments,” she said.

RateCity Tips: What to consider before committing to a fixed rate mortgage

• Are you happy with the rate?
• How many years you want to fix your home loan for?
• What’s your plan for the property – are you likely to sell?
• Would a split loan work for your finances? Spilt loans where a portion is variable can often help retain some flexibility in the loan.
• Do you want to make extra repayments or have the flexibility of an offset?

Lenders passing variable rate cuts onto existing customers

Source: RateCity.com.au