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Low rate lenders battle it out with history-making variable rates
Australia’s low rate lenders are battling it out with variable rates now tumbling as low as 3.09 per cent.
Today, non-bank lender Reduce Home Loans launched a new product at 3.09 per cent, making this the new lowest ongoing variable rate. The product is for new customers with a 40 per cent deposit (60% loan-to-value ratio, LVR).
Mortgage House has also dropped its lowest variable rate today to 3.14 per cent for people living outside of NSW with a 30 per cent deposit (70% LVR), while loans.com.au has dropped its lowest rate to 3.28 per cent.
RateCity.com.au research director Sally Tindall said the non-bank lenders were climbing over each other to claim the lowest rate.
“Ideal borrowers are increasingly being rewarded with lower rates. If you’re an owner-occupier paying down your debt with a bit of equity up your sleeve you’re in the box seat when it comes to rates.
“If the RBA cuts again, we will almost certainly see variable rates drop below 3 per cent,” she said.
Lowest variable rates
| Lender | Rate | LVR |
|---|---|---|
| Reduce | 3.09% | 60% |
| Mortgage House | 3.14%* | 70% |
| Homestar Finance | 3.24% | 80% |
| Loans.com.au | 3.28% | 80% |
* Rate is for all states except NSW
Lowest 1-year fixed rates
| Lender | Rate |
|---|---|
| Greater Bank | 2.99% |
| UBank | 2.99%* |
| Tic Toc | 3.39% |
| RACQ | 3.49% |
* Effective 14 June
Lowest 3-year fixed rates
| Lender | Rate |
|---|---|
| Reduce | 3.19% |
| BOQ | 3.39% |
| Virgin Money | 3.39% |
| Loans.com.au | 3.48% |
Lowest 5-year fixed rates
| Lender | Rate |
|---|---|
| Westpac* | 3.49% |
| Greater Bank | 3.64% |
| Macquarie | 3.79% |
| G&C Mutual | 3.89% |
Source: RateCity.com.au *first home buyer offer
Disclaimer
This article is over two years old, last updated on June 12, 2019. 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 25 Apr, 2024
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