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Popular lenders offering 3-year home loans from 2.99%

Popular lenders offering 3-year home loans from 2.99%

Suncorp Bank and Bank of Queensland are leading the way among Australia’s largest banks for three-year home loan interest rates.

Got a 20% deposit? If so, Suncorp Bank and Bank of Queensland are both offering advertised rates of 2.99 per cent for three-year fixed-rate mortgages (see table below).

Suncorp has a comparison rate of 3.84 per cent, while BoQ has a comparison rate of 4.09 per cent.

In a sign of how far interest rates have fallen in recent months, all of the big four banks are offering three-year home loans for under 3.30 per cent.

3-year fixed-rate home loans

LenderProductAdvertised rateComparison rate
Suncorp BankHome Package Plus2.99%3.84%
Bank of QueenslandFixed Rate Home Loan2.99%4.09%
ME BankFlexible Home Loan with Member Package3.18%3.87%
WestpacPremier Advantage Package3.28%3.99%
ANZFixed Rate Loan3.28%4.53%
Commonwealth BankWealth Package3.28%4.54%
Macquarie BankBasic Home Loan3.29%3.33%
NABChoice Package3.29%4.45%
INGOrange Advantage3.64%4.30%

Interest rates are based on a $400,000 loan for a $500,000 property. The cheapest home loan won’t always be the best home loan for each borrower.

Interest rates may have further to fall

Whether to fix or go variable could be one of the biggest questions borrowers face when they compare home loans.

If you fix and variable rates go up, you feel like a winner; but if you fix and variable rates go down, you may feel you’ve lost money.

No one knows for sure whether the next move in official interest rates will be up or down, but the Reserve Bank of Australia (RBA) has hinted that it is considering a rate cut.

At the RBA’s most recent monthly meeting, on August 6, the board decided not to change official interest rates, after cutting rates at the June and July meetings. However, the minutes from the meeting revealed that board members “would consider a further easing” of official interest rates if it would help the economy.

If you already have a home loan and are thinking about switching lenders, you can use RateCity’s refinancing calculator to research different repayment scenarios. 

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