The five home loan rate cuts you need to know about

Ceyda Erem

03 Jun 2019

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If you haven’t heard the latest news, Greater Bank have made the move to cut fixed rates this morning, with their one year fixed rate hitting a jaw dropping 2.99% (4.42% comparison rate*) - making it the lowest one year fixed rate on the market, according to CEO, Scott Morgan.

“Fixing your home loan can give peace of mind knowing your repayments won’t ever change for a set period of time” said Mozo Director, Kirsty Lamont.

“And with Greater Bank’s new fixed rates set to shake up the mortgage market, I wouldn't be surprised if we saw other lenders cutting rates to below the 3% mark.”

But what’s a hot new rate with nothing to compare it to? Over the last few months, UBank, NAB, loans.com.au and more recently, Bank Of Queensland and Virgin Money have also cut rates across some of their fixed rate products.

So if you’re interested to check out how Greater Bank’s new fixed rates stack up, check out some great fixed rate deals below.

Promoted

Tic:Toc Variable Home Loan
  • Low 3.47% interest rate (3.48% comparison rate*)

  • 2019 Mozo Experts Choice Online Home Lender of the Year

  • $1000 cashback offer

First up is online lender Tic:Toc and its Variable Home Loan. Aside from being the 2019 Mozo Experts Choice Online Home Lender of the Year, Tic:Toc have also cut rates by 10 basis points, bringing its variable rate to a low 3.47% (3.48% comparison rate*). With this loan, you’ll pay no application or services fees and no valuation or settlement fees, though there is a $325 discharge fee. And aside from the free extra repayments and redraw features, new borrowers will receive $1,000 cashback upon settlement, regardless of the loan size or type.

Promoted

loans.com.au Fixed Rate Special Offer
  • 3.48% fixed three year rate (3.85% comparison rate*)

  • No application fee

  • Free extra repayments (up to $10,000 p.a.)

Also cutting 30 basis points to their fixed rate home loan was loans.com.au. The loans.com.au Fixed Home Loan keeps things simple, starting with a low 3.48% fixed three year rate (3.85% comparison rate*). There’s free extra repayments (up to $10,000 p.a.) and no application or ongoing fees, though there is a $220 valuation and $300 settlement fee to budget for. You’ll also be able to choose your repayment schedule and once your fixed rate term has ended, you’ll be rolled over to loans.com.au’s offset variable rate.

Promoted

UBank UHomeLoan
  • Double 2019 Mozo Experts Choice Award winner

  • 3.59% fixed three year rate (3.97% comparison rate*)

  • No discharge fee

You know you’re onto a winner when a home loan has won two Mozo Experts Choice Awards and cut fixed rates by 15 basis points. Meet the UBank UHomeLoan with the brand new three year fixed rate of 3.59% (3.97% comparison rate*). While this no frills loan doesn’t come with any repayment features, other than the $395 upfront fee, you won’t pay any other fees over the life of the loan.

Promoted

Bank Australia Basic Home Loan
  • 2019 Mozo Expert Choice Award winner

  • 3.74% fixed three year rate (3.95% comparison rate*)

  • Borrow with a 5% deposit

If you’re a first home buyer, you need to check out the Bank Australia Basic Home Loan! Not only has Bank Australia just cut its fixed rate by 29 basis points, but you’ll be able to borrow up to 95% of the property’s value! With this loan, there are no application or service fees and you’ll be able to make your repayments either weekly, fortnightly or monthly. And if you ever need a break from your home loan, you can take advantage of the repayment holidays feature.

Promoted

Bank of Queensland Fixed Rate
  • Low 3.39% fixed three year rate (4.41% comparison rate*)

  • Borrow with a 5% deposit

  • Free extra repayments (up to $5,000 p.a.)

Last but certainly not least is the Bank of Queensland Fixed Rate home loan, the final provider on our list to cut fixed rates by 30 basis points. With a low 3.39% fixed rate (4.41% comparison rate*), the Bank of Queensland Fixed Rate home loan could be a great pick for first time buyers, as you only need a 5% deposit to apply! You’ll be able to slash your interest bill, thanks to the free extra repayments feature and save on legal and valuation fees. And with the option to split your loan and choose your repayment frequency, the Bank of Queensland Fixed Rate home loan is full of flexibility.

*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.

If you’d like to check out more fixed rate options, head on over to our home loan comparison tool.

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