Small lenders offering ultra-low home loan rates

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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 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

^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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