Easy Street, a division of Community First Union, introduced a contender for best value home loan this week. Its Standard Variable Home Loan now offers rates as low as 1.95% p.a. (1.99% p.a. comparison rate*) on loans of at least $750,000.
The loan doesn’t charge any monthly or annual fees and comes with a number of features, such as an offset account, fee-free redraw facility and the ability to make free extra repayments. There is, however, an application fee of $500.
John Tancevski, chief executive of Community First Credit Union said it was the lowest home loan rate they have ever offered and “is evidence that it is possible to offer an exceptionally low rate without scrimping on loan features.”
Are there other rates below 2%?
Among providers we track, the offering from Easy Street is the only variable rate home loan that’s crossed the 2% mark. However, a number of lenders have rolled out introductory rates in the same ballpark.
This includes offerings from loans.com.au like the Smart Booster (1.99% p.a. variable rate for 12 months) and Community First Credit Union’s Accelerator Home Loan (1.99% p.a. variable rate for 24 months).
Most recently, Reduce Home Loans launched its Rate Crusher home loan, which comes with a fixed rate of 1.90% p.a. (2.39% p.a. comparison rate*). This applies for one year before reverting to 2.39% p.a.
The loan is available to owner occupiers making principal and interest repayments. Importantly, it is limited to loans with an LVR of up to 80%, meaning you’ll need to have a deposit of at least 20% of a property’s value saved up to be eligible.
Customers will be able to borrow between $50,000 and $850,000 and extra repayments of up to $20,000 can be made each year without incurring penalty. While there aren’t any application or establishment fees, there will be a valuation fee of around $250 and legal fees of around $297.
The Rate Crusher joins only a handful of fixed rates in our database below 2%, such as the Homestar Star Classic, which offers rates as low as 1.98% (2.41% comparison rate*). However, this is available for a limited time only.
For information about all the latest moves in the market, read our September home loan snapshot. And if you’re after a loan and are not sure where to start, make our home loan comparison page your first stop.
Home loan comparisons on Mozo - last updated January 21, 2021
^See information about the Mozo Experts Choice Home Loans Awards
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