Effective today (Wednesday 8 July), loans.com.au has cut its Smart Home Loan 80 (owner-occupier, principal and interest) variable rate to 2.57% p.a. (2.59% p.a. comparison rate*), a cut of six basis points.
In March, this loan's interest rate was 2.63% p.a (2.65% p.a comparison rate*).
The online lender has also cut its two-year fixed rate for owner-occupiers paying principal and interest to just 2.29% p.a. (2.98% p.a. comparison rate*)
Other two-year fixed-rates fresh off loans.com.au's chopping block include:
- Owner-occupier, interest-only: 2.79% p.a (3.05% p.a. comparison rate*)
- Investor, principal and interest: 2.69% p.a (3.34% p.a. comparison rate*)
- Investor, interest-only: 2.99% p.a (3.38% p.a. comparison rate*)
In March, these rates were significantly higher:
- Owner-occupier, interest-only: 3.28% p.a (3.34% p.a. comparison rate*)
- Investor, principal and interest: 3.08% p.a (3.61% p.a. comparison rate*)
- Investor, interest-only: 3.48% p.a (3.66% p.a. comparison rate*)
These fixed-rate discounts are for LVRs up to 80%, and are for a limited time only for new customers.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 90% | Featured 4.6 Star Customer Ratings |
| |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | Featured Apply In Minutes |
| |||||||||
6.09% p.a. | 6.11% p.a. | $2,421 | Principal & Interest | Variable | $0 | $250 | 60% | Featured Unlimited Redraws |
|
Managing Director of loans.com.au Marie Mortimer said the lower rates would be an unbeatable proposition for borrowers when combined with its faster processing times, which Ms Mortimer said were up to 10 times faster than some banks.
“Our rates are highly competitive but, just as important, we process most loans in 24-48 hours once we have received a completed application, while processing times at some major lenders have blown out to more than three weeks,” she said.
“Most buyers can’t wait for weeks for a simple answer on a loan application so our service advantage is becoming an ever greater draw card.”
|
Product |
Max LVR |
Repayments |
Interest Rate |
Comparison Rate |
|
Smart Home Loan 80 |
80% |
P&I |
2.57% |
2.59% |
|
2 year fixed – Special Offer |
90% |
P&I |
2.29% |
2.98% |
Source: Loans.com.au
Ms Mortimer also said this "robust" online lending model has further demonstrated its value during COVID-19.
“Just like online shopping, online lending has proven to be much more resilient than bricks-and-mortar to the challenges of the COVID-19 world and is quickly moving to centre stage,” Ms Mortimer said.
“We have been able to provide uninterrupted service throughout the crisis and ensured that Australians can easily get a competitively-priced property loan without leaving their home.”
Could now be the time to fix?
As seen above, most of the changes made were to fixed-rate home loans.
Many banks and lenders have been cutting fixed rate home loans recently, with one challenger lender even offering home loan rates under-2% mark on a three-year fixed mortgage.
Mortgage Choice Chief Executive Officer Susan Mitchell said data shows 33% of borrowers opted to fix either part or all of their mortgage rate in the month up to June 2020.
In comparison, just 14% did the same in the three months to February 2020.
“Lenders have been pulling out all stops to compete for market share and over the last few months, we have seen cash back offers and interest rates lowered across both variable and fixed rate home loan products," Ms Mitchell said.
"This fierce competition has encouraged a vast number of borrowers to switch their home loan providers and refinance their loans.
“The uncertainty created by the current economic downturn and the historic low fixed interest rates on offer are urging more borrowers to fix their home loan interest rates."
Buying an investment property or looking to refinance? The table below features home loans with some of the lowest fixed interest rates on the market for owner-occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.14% p.a. | 6.01% p.a. | $2,434 | Principal & Interest | Fixed | $0 | $0 | 90% | Free Redraw Facility | ||||||||||
5.89% p.a. | 6.13% p.a. | $2,370 | Principal & Interest | Fixed | $0 | $350 | 80% | |||||||||||
6.69% p.a. | 7.77% p.a. | $2,578 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||
6.69% p.a. | 7.19% p.a. | $2,578 | Principal & Interest | Fixed | $0 | $160 | 80% |
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