Eight lenders offering variable home loans under 3.10%



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What a difference two months makes for Australian home loan customers.

Back in May, the lowest variable-rate mortgage in Australia was priced at 3.44 per cent. Now, after two rate cuts from the Reserve Bank, variable rates have fallen to as low as 2.89 per cent.

There are now eight lenders offering variable home loans for under 3.10 per cent:

Lender Product Advertised rate Comparison rate
Reduce Home Loans Low Rider 2.89% 2.89%
Mortgage House Blue Loan Prime 2.89% 2.93%
Well Home Loans Well Balanced 2.99% 3.00%
Homestar Finance Star Essentials 2.99% 3.02%
Loans.com.au Smart Home Loan 3.03% 3.05%
Freedom Lend Freedom Variable 3.04% 3.04%
Tic Toc Live-in Variable 3.07% 3.08%
Athena Home Loans Owner Occupier Loan 3.09% 3.05%

Part of the reason these lenders are able to offer home loans with low interest rates is because they’re online-only. 

Not having branch networks lowers their operating costs; these savings can then be passed on to borrowers in the form of lower rates and fees.

By contrast, Australia’s big four banks have large branch networks, higher operating costs – and higher interest rates. Their cheapest home loans start from:

Lender Product Advertised rate Comparison rate
Commonwealth Bank Extra Home Loan 3.35% 3.36%
NAB Base Variable Rate Home Loan 3.35% 3.39%
ANZ Simplicity Plus Home Loan 3.38% 3.42%
Westpac Flexi First Option Home Loan 3.58% 3.59%

Where to for interest rates?

No one can ever say for sure what will happen to home loan rates, but it’s quite possible that they will fall further later this year.

That’s because some economists believe the Reserve Bank will make another rate cut in 2019, which would then prompt many lenders to lower their mortgage rates.

If and when that happens, the RateCity Rate Tracker will record the Reserve Bank decision and provide live updates whenever lenders respond with their own interest rate changes.

In the meantime, you can compare home loans to find the best home loan for your situation.

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