Mortgage interest rates are currently priced as low as 3.49 per cent, according to a new analysis of the Australian home loan market.
As of today, the lowest-rate product listed on RateCity is the Rate Lovers Variable Home Loan from Reduce Home Loans, which has an advertised and comparison rate of 3.49 per cent.
This loan comparison assumes that a borrower wanted to take out a $400,000 mortgage against a $500,000 property, for a loan-to-value ratio of 80 per cent.
Based on those assumptions, the Rate Lovers Variable Home Loan would require monthly repayments of $1,794.
The table below lists some of the other cheapest rates currently on the market – although please note that higher-rate products will sometimes be more suitable for some borrowers.
|Lender||Product||Advertised rate||Comparison rate||Monthly repayments|
|Reduce Home Loans||Rate Lovers Variable Home Loan||3.49%||3.49%||$1,794|
|Loans.com.au||Essentials Home Loan||3.52%||3.54%||$1,801|
|Reduce Home Loans||Rate Buster High Lend Variable Home Loan||3.53%||3.53%||$1,803|
|Pacific Mortgage Group||Standard Variable Home Loan||3.54%||3.54%||$1,805|
|Online Home Loans||Horizon Home Loan||3.54%||3.86%||$1,805|
|Gateway Credit Union||Low Rate Essentials Home Loan||3.59%||3.61%||$1,816|
|Easy Street||Standard Variable Home Loan||3.59%||3.62%||$1,816|
|People’s Choice Credit Union||Package Variable Home Loan||3.59%||3.99%||$1,816|
|Bank of Melbourne||Basic Home Loan||3.64%||3.65%||$1,828|
|BankSA||Basic Home Loan||3.64%||3.65%||$1,828|