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Australia’s last record low fixed rate disappears – but there’s still 181 rates under 2%

Australia’s last record low fixed rate disappears – but there’s still 181 rates under 2%

The lowest ever advertised 1-year fixed rate of 1.67 per cent from BCU has been hiked, marking the end of historic low fixed rates in Australia.

Analysis from RateCity.com.au shows in each fixed rate category (1- 5-years), the lowest rate has now disappeared.

However, the lowest ever variable rate of 1.77 percent for owner-occupiers still remains.

Lowest advertised home loan rates in Australia

Historic lowest rateCurrent lowest rateDifference
1 yr fixed

1.67%

1.69% 

0.02%

2 yr fixed

1.74%

1.79% 

0.05%

3 yr fixed

1.75%

1.89% 

0.14%

4 yr fixed

1.89%

2.14% 

0.25%

5 yr fixed

1.99%

2.27% 

0.28%

Variable

1.77%

1.77% 

0

Source: RateCity.com.au

Still plenty of home loan rates under 2 per cent

Despite the recent hikes to the lowest rates, there are still 181 home loan rates under 2 per cent.

The number of variable rates starting with a ‘1’ have almost doubled in the last three months.

However, the number of 2- and 3-year fixed rates under 2 per cent have both dropped.

Home loan rates under 2 per cent

Pre COVID3 months agoToday
1 yr fixed

0

34

43

2 yr fixed

0

70

68

3 yr fixed

0

50

31

4 yr fixed

0

7

0

5 yr fixed

0

0

0

Variable

0

22

39

Total

0

183

181

Source: RateCity.com.auRates include owner-occupier and investor loans. Some lenders offer multiple rates under 2 per cent. A list of lenders under 2 per cent available on request. Pre COVID is March 1 2020, 3 months ago is 30 April 2021.

RateCity.com.au research director, Sally Tindall, said; “While the lowest fixed rates on record are now gone, we’re still in a low-rate environment where owner-occupiers can find a rate under 2 per cent.

“We’re living in an unprecedent period of historic low rates – mortgage holders can use that to their advantage because in two years’ time the market is likely to look completely different. We may never see rates this low again.

“Fixed or variable – customers still largely have the pick of it – but with most of these rates reserved for new customers or those willing to fix, you have to be proactive.

“Even the big four banks are offering at least one fixed rate under 2 per cent but they’re unlikely to all stick around.

“While the RBA has made it clear it doesn’t expect the cash rate to rise until 2024, banks are hiking fixed rates in advance and will continue to do so as we edge closer to this date,” she said.

Lowest rates on the RateCity.com.au database

LenderRate
1 yr fixedGreater Bank

1.69%

2 yr fixedGreater Bank

1.79%

3 yr fixedING

1.89%

4 yr fixedTeachers Mutual

2.14%

5 yr fixedFreedom Lend

2.27%

VariableReduce Home Loans

1.77%

Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply. 

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1 yr fixed

2.09%

1.99%

2.09% 

2.04%

2 yr fixed

1.94%

1.89%

1.99%

1.94%

3 yr fixed

2.19%

1.98%

2.08%

2.04%

4 yr fixed

2.24%

2.19%

2.24%

2.49%

5 yr fixed

2.99%

2.49%

2.49%

2.69%

Variable

2.69%

2.19% for 2 yrs then 2.69%

2.69%

2.72%

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

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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