The Reserve Bank has kept the official cash rate on hold for December, but some of Australia’s top lenders are still forging ahead with their own home loan rate cuts in a bid to entice bargain hunting refinancers and first home buyers.
HSBC, Suncorp, Well Home Loans, loans.com.au and UBank are just a few of the big name lenders to cut their rates to new ultra low levels in recent weeks, with Suncorp and HSBC dropping unbelievable new 2 year fixed rates below 1.90% p.a. Not to be left out, popular online lenders have also been wielding the scissors, led by Well Home Loans and its new 2.17% p.a. variable rate (2.20% comparison rate*).
With the average variable home loan rate sitting at 3.44%, there are now huge savings to be gained by shopping around. Start by comparing some of the top new rates on the market below….
TOP NEW HOME LOAN OFFERS DECEMBER 2020
Suncorp Fixed Home Loan Special Offer
New 1.89% fixed rate for 2 years (2.94% comparison rate*)
This killer new 2 year fixed home loan offer from Suncorp also has a comparison rate* coming in under 3.00%, so you won't be stuck with a rip off revert rate when the fixed term ends. You can make up to $500 a month in extra repayments over the fixed term without penalty, but bear in mind that there is no redraw facility. As an added incentive, for a limited time refinancers can get a cash bonus of $2,000 when refinancing an eligible home loan.
HSBC Fixed Rate Home Loan
New 1.88% fixed rate for 2 years (2.98% comparison rate*)
Fixed rates don't get much lower than this new 2 year fixed rate home loan from HSBC. It's sure to win over plenty of borrowers eager to save on monthly repayments and protect against future rate rises. There are no upfront or ongoing fees and you can choose to make free extra repayments of up to $10,000 each year and split your loan with one of HSBC's competitive variable loans. It's available to borrowers with at least 20% deposit.
Well Home Loans took out a Mozo Experts Choice 2020 Award for Best Low Cost Home Loan, and with rates like these on offer its not hard to see why. The new 2.17% variable rate (2.20% comparison rate*) is one of the lowest on the market, plus you can take advantage off free extra repayments and online redraw as well as the option to add a 100% offset account facility for an extra $10 per month to help pay your mortgage down even faster. Available for loans of $200,000 plus with a maximum 80% LVR.
loans.com.au Smart Booster Home Loan
Introductory 1.99% variable rate for 1 year (2.47% comparison rate*)
Popular online lender loans.com.au offers up an ultra-low one year intro rate and competitive ongoing variable rate of 2.48% to help you pay off your home loan faster and save on interest while you're at it. You can also take advantage of flexible features like an optional offset account and free redraw facility, plus enjoy zero application or ongoing service fees. With the Smart Booster Discount Variable Loan you’ll be able to borrow up to $1 million over a 15-30 year term with 20% deposit.
1.95% fixed rate for 3 years (2.27% comparison rate*)
UBank has cut its already competitive fixed rates even further, and is now offering rates as low as 1.95% (2.27% comparison rate*) for borrowers happy to lock in for three years. Owner-occupier borrowers will be able to grab that rate on loans between $100,000 and $2,000,000 and while there is an initial $395 application fee to consider, there are no other fees to worry about. UBank even lets customers make extra repayments towards the loan of up to $20k per year, for free!
*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.