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Battle of the banks – Australia’s lowest variable rate hits 2.17%

Liz Seatter avatar
Liz Seatter
- 3 min read
Battle of the banks – Australia’s lowest variable rate hits 2.17%

Variable home loan rates continue to drop with Freedom Lend today, the new leader in the mortgage rate wars.

The online lender is now offering a new record-low variable rate of 2.17 per cent, for new customers with a deposit of 30 per cent of more.

Home loan rates have continued to drop despite no official change to the cash rate.

Analysis of the data base shows this month alone, 15 lenders have cut more than 50 variable home loan rates for new customers.

Australia's 5th largest lender, ING, has today also cut rates on both their Mortgage Simplifier and Orange Advantage accounts by 0.19%

ING Mortgage Simplifier

Old rateNew rateChange
Loans over $1M2.74%2.55%0.19%
Loans $150K - $1M2.78%2.59%0.19%

Notes: Based on owner occupier paying principal and interest with an LVR of 80% or less. research director Sally Tindall said: “The fight is on between the non-bank lenders to have the lowest variable rate in Australia.”

“Today, Freedom Lend has upped the ante in a home loan rate war that refuses to cool down,” she said.

“Over the last couple of months, smaller providers have had to chip away at their rates in order stay ahead of the big banks.

“Just three months ago, the lowest variable rate was 2.44 per cent. Since then it has dropped 27 basis points.

“With the number of new home loans on the decline, lenders desperately need new business so they’re looking to refinancers to make up the difference.

“The recent increase in refinancing activity suggests rock bottom rates are prompting people to switch to take advantage of the relentless market competition,” she said.

Lowest variable rates on

LenderLoanAdvertised rateComparison rate
Freedom LendFreedom Variable Special



Reduce Home LoansSuper Saver Special



Homestar FinanceStar Gold



Tic TocLive-in Variable



Pacific Mortgage GroupStandard Variable



YardYard Home Loan



Big four bank lowest variable rates

BankLoanAdvertised rateComparison


NABBase Variable special2.69%2.84%
WestpacFlexi First Option2.69%2.70%
ANZSimplicity PLUS2.72%2.76%
CBAExtra Home Loan2.79%2.80%

Notes: above rates are for owner occupiers paying principal and interest. LVR restrictions apply. Westpac, Freedom Lend and Pacific Mortgage Group require a loan-to-value ratio (LVR) of 70%, Homestar Finance requires a 60% LVR. All other loans listed require an LVR of 80% or more.


This article is over two years old, last updated on June 25, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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Product database updated 22 Jun, 2024

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