Bank of Queensland and Virgin Money become the latest lenders to cut fixed rates to 2.99%

Ceyda Erem

28 Jun 2019

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It looks like the 2.99% fixed rate party just keeps getting bigger and bigger, as Bank of Queensland and Virgin Money have both cut their three year fixed rate to a rock bottom 2.99% (4.19% comparison rate and 3.53% comparison rate respectively*), effective today.

Earlier this month, Greater Bank kicked off the 2.99% trend by slashing its 1 year fixed rate, before UBank sized up to the task and did the same.

“We want to help more Australians achieve their financial goals, whether that’s buying into the property market for the first time or expanding an existing portfolio,” said Virgin Money’s General Manager, Lending, Cards & Deposits, Johnny Lockwood.

One thing to keep in mind is that the new 2.99% fixed rate loan available from both Virgin Money and Bank of Queensland from today, is only available to new borrowers with a 20% deposit. However there are other fixed rate options for those looking to borrow with a 10% deposit.

But of course, there’s more to a great value loan than just a super low rate, so let’s take a closer look at the Bank of Queensland and Virgin Money fixed rate home loan. 

Promoted

Bank of Queensland Discount Fixed Rate 300k+
  • Super low 2.99% three year fixed rate (4.19% comparison rate*)

  • Make up to $5,000 extra repayments annually for free

  • Split loan option

No matter where you are in Australia, the Bank of Queensland Fixed Rate home loan could be the loan you’ve been looking for. Aside from the new super low fixed rate available for loans from $300,000, first home buyers who apply before June 30 2019 will score $1,000 cashback! Extra repayments of up to $5,000 are welcome every year during the fixed term and you’ll have the flexibility to split your loan, so you’ll be able to take advantage of any future rate cuts on the variable portion of the loan. Just keep in mind, you will have to budget for the $300 application and $10 monthly service fee. 

Read more about the Bank of Queensland Fixed Rate Home Loan

Promoted

Virgin Money Special Offer Reward Me Fixed Rate Home Loan
  • Super low 2.99% fixed three year rate (3.53% comparison rate*)

  • 2019 Mozo Experts Choice Award winner^

  • No application fee

If you believe that a home loan should be more than just a low rate, then you might want to check out the Virgin Money Reward Me Fixed Rate Home Loan. There’s a rock bottom 2.99% fixed three year rate (3.53% comparison rate*) up for grabs, plus the chance to earn thousands of Velocity points over the life of your loan. There’s no application, legal or valuation fees, though there is a $10 monthly service fee to keep in mind. You’ll also have free extra repayments of up to $10,000 and the option to split your loan. No wonder it’s a 2019 Mozo Experts Choice Award winner^.

Read more about the Virgin Money Reward Me Fixed Rate Home Loan

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

But if you’ve had your sights set on a variable rate loan, Mozo’s Banking Expert, Peter Marshall believes they still could be worth sticking around for. 

“Bank of Queensland and Virgin Money are now joining a select few lenders dropped fixed rates to 2.99% this month, plus are offering a $1,000 cashback deal [for first home buyers], so lenders are really pulling out all the stops to entice borrowers to lock in their rate,” said Mozo Banking Expert, Peter Marshall. 

“If you’re not ready to fix your loan, don’t be scared to hold out for now, because with another potential RBA rate cut just around the corner, we could soon start seeing variable rates that start with a ‘2’”.”

If a variable rate sounds more your speed, check out the new 3.34% variable rate offer (3.34% comparison rate*) available from UBank today.

See how it stacks up against other fixed rates on the market by heading over to our home loan comparison tool.

^Find out more about the Mozo Experts Choice Awards

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