Homestar Finance is the latest lender to cut rates, dropping its 2-year fixed rate to 1.74 per cent.
This is the new lowest 2-year fixed rate on the market and the overall lowest mortgage rate available nationally. (Greater Bank is offering 1-year fixed rates at 1.69 per cent, however, it’s only available in NSW, QLD and ACT.)
This new rate comes hot on the heels of cuts from Westpac last week. Australia’s second largest bank did have the lowest 2-year rate on the market of 1.79 per cent, but today Homestar Finance has trumped it.
The loan is available for customers with deposits of 20 per cent or higher and has a competitive revert rate of 2.24 per cent.
RateCity.com.au mortgage market analysis:
- 33 lenders have cut fixed home loan rates in the last two months on 456 mortgage rates.
- 2-year fixed rates have seen the most cuts in the last two months (including from big four banks Westpac, NAB and ANZ).
- 57 lenders are now offering 175 rates under 2 per cent.
RateCity.com.au research director, Sally Tindall said; “The mortgage rate war is still playing out with another record low loan now on the table.
“Anyone looking to refinance in this market is spoilt for choice and could potentially save thousands by shopping around,” she said.
“While the RBA has kept rates on hold since November, the fixed rate cuts keep coming from lenders big and small, inching below their competitors.
“Banks offering owner-occupier fixed rates over 2 per cent might have to concede to peer pressure and consider cutting rates if they want to lock in new customers,” she said.
Lowest rates on RateCity.com.au database
1 yr fixed
Greater Bank (NSW, QLD, ACT only).
2 yr fixed
3 yr fixed
4 yr fixed
|Westpac, St George, Bank of Melbourne||1.89%|
5 yr fixed
|Aussie Home Loans||1.99%|
|Reduce Home Loans||1.77%|
Source: RateCity.com.au. Rates are for owner occupiers paying principal and interest. Some LVR requirements apply.
Big four banks – lowest owner-occupier rates
1 year fixed
2 year fixed
3 year fixed
4 year fixed
5 year fixed
Lowest variable rate
|2.69%||2.19% for 2 yrs then 2.69%||2.69%||2.72%|
Note: Westpac's rates are for a loan to value ratio of 70%.