cuts fixed rates, now offers 2 and 3 year options below 3.00%

Following this year's three RBA rate cuts, we’ve seen plenty of lenders scrambling to reduce home loan rates, and is the latest to jump on the bandwagon. Today, the online lender made cuts of 0.20% across its range of fixed rate home loans, effective immediately. 

The cuts see headline rates for the 2 and 3 year Fixed Home Loan options (Owner Occupier, P&I) drop to just under the 3.00% mark. Right now, owner occupiers looking to lock in a 3 year term will be looking at rates in the range of 2.99% p.a. (3.27% p.a. comparison rate*). Managing Director, Marie Mortimer said that with interest rates at historic lows, fixed rate options could be a good bet for homebuyers who are looking for an extra layer of certainty in their loan.

“Fixed-rate loans offer a number of advantages over a variable rate loan because they make budgeting easier and protect you from any future interest rate rises,” she said.

“No-one can predict where variable rates will go from here but with rates this low, the potential benefits from further variable rate cuts are tiny and locking in these extraordinarily-low fixed rates is an increasingly attractive option.”

New owner occupier fixed rates

• Fixed - Owner Occupier P&I 1 year: 3.44% p.a. (3.35% p.a. comparison rate*)

• Fixed - Owner Occupier P&I 2 year: 2.99% p.a. (3.29% p.a. comparison rate*)

• Fixed - Owner Occupier P&I 3 year: 2.99% p.a. (3.27% p.a. comparison rate*)

• Fixed - Owner Occupier IO 1 year: 3.59% p.a. (3.36% p.a. comparison rate*)

• Fixed - Owner Occupier IO 2 year: 3.34% p.a. (3.34% p.a. comparison rate*)

• Fixed - Owner Occupier IO 3 year: 3.34% p.a. (3.35% p.a. comparison rate*)

The cuts have also sharpened rates for investors, who will now be able to enjoy fixed rates as low as 3.39% p.a. (3.65% p.a. comparison rate*) for two year terms and 3.39% p.a. (3.63% p.a. comparison rate*) for three year terms.

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