There are now eight lenders offering home loan rates under 2 per cent, with People’s Choice Credit Union today cutting its 1-year-fixed rate to 1.99 per cent.
The 2 per cent barrier was broken at the end of June. Just seven weeks later and another seven lenders have joined the ranks
RateCity database analysis:
- 8 lenders are offering owner-occupier rates below 2%
- 81 lenders are offering owner occupier rates below 2.5%
- Lowest variable is 1.95%
- Lowest fixed is 1.98%
RateCity research shows refinancing to a rate under 2 per cent could save the average mortgage holder around $250 a month after switching costs. This is based on a $400,000 owner-occupier home loan paying principal and interest.
RateCity research director, Sally Tindall, said: “It’s a win for home-owners to see the list of lenders offering rates below two per cent continuing to grow.”
“Some of these sub-2 per cent rates have unusual terms and conditions so they won’t suit everyone.
“But with 81 lenders offering owner-occupier rates under 2.5 per cent, refinancers are spoilt for choice, particularly if they’re looking for a fixed rate.
“We expect more lenders to join the under 2 per cent club, but it’s unlikely the big four banks will take out a membership any time soon,” she said.
The lowest rate currently being offered by the big four banks is 2.19 per cent from Westpac and NAB.
Lenders offering rates under 2%
Source: RateCity.com.au. Note: Hume Bank rate is only available to new loans for renovation or construction of new properties within 150 km of Albury Post Office. Loans.com.au product is an introductory variable rate – 1.99% for one year after which it reverts to 2.57%. Data accurare as of 21.08.2020.
Lowest owner-occupier rates on RateCity.com.au
|Variable||Easy Street Financial Services|
|2-year fixed||Community First Credit Union|
|3-year fixed||Hume Bank/Bank First|
|5-year fixed||UBank/ING/MOVE Bank/Police Bank/Citi|
Source: RateCity.com.au. Hume Bank rate is only available to new loans for renovation or construction of new properties within 150 km of Albury Post Office. Data accurare as of 21.08.2020.
Big Four Bank lowest rates
|Lender||Advertised variable||Advertised |
Source: RateCity.com.au. Note: Rates are for owner occupiers paying principal and interest. *Westpac’s rates are for customers with a loan-to-value ratio of less than 70 per cent. Data accurare as of 21.08.2020.