The mortgage market has seen some significant cuts in fixed rates over recent months with the big banks also getting in on the action.

One of the main drivers is the availability of cheaper funds on global markets as interest rates in other economies head lower (although not in the US or Australia).

ANZ remains the outlier of the big four banks with no recent movement in its advertised fixed rates.

NAB, Macquarie, Westpac, and CommBank have all dropped their fixed rate loans, as well as a flurry of smaller lenders over the past couple of months.

BoQ joins the fray

Australia's sixth-largest home lender by value Bank of Queensland has now taken its three-, four-, and five-year fixed rates lower with its discount rates under the 6% mark.

Its best new rate is its 5.69% p.a. discount rate (6.31% p.a. comparison rate*) for new owner occupiers with a loan-to-value ratio (LVR) <80% making principal and interest (P&I) payments fixed for three years.

It's also offering the same rate for lower deposit, LVR 80-90% loans, although these come with lenders mortgage insurance (LMI).

The rate is among the lowest three-year fixed rates on the market, although not quite as low as Macquarie Bank's latest 5.59% p.a. (6.01% p.a. comparison rate).

Here's some of BoQ's new fixed rates for owner occupiers paying P&I:

Product Change (%) New rate Comparison rate*
3 years fixed -0.05 6.04% p.a. 6.41% p.a.
3-year discount rate LVR<90% with LMI -0.05 5.69% p.a. 6.31% p.a.
4 years fixed -0.15 6.34% p.a. 6.49% p.a.
4-year discount rate LVR<90% with LMI -0.15 5.99% p.a. 6.37% p.a.
5 years fixed -0.15 6.34% p.a. 6.49% p.a.
5-year discount rate LVR<90% with LMI -0.15 5.99% p.a. 6.34% p.a.

BoQ's discounted rates are offered for a limited time to new-to-bank borrowers only.

Loans.com.au meets market challenge

The online non-bank lender has matched BoQ's three-year fixed rate, taking a notable 55 basis points of its owner occupier P&I loan to 5.69% p.a. (6.16% p.a. comparison rate*).

The loans.com.au special rate is available to borrowers with a 10% deposit, can be split with a variable rate loan, and comes with no monthly or ongoing fees.

In the interest of full disclosure both loans.com.au and Savings.com.au are part of the Firstmac Group.

Credit Union SA takes 3-year rate lower

The credit union has shaved 10 basis points off its three-year fixed home loan package rate to 5.89% p.a. (6.65% p.a. comparison rate*) for owner occupiers making P&I repayments.

It will also apply the rate to loans with as low as a 3% deposit but will include LMI added to the home loan amount.

Credit Union SA's home loan packages come with an annual fee of $395.

The credit union has also dropped up to 25 basis points off a selection of two- and three-year fixed home loans for occupiers and investors making P&I and interest only (IO) repayments.

Queensland Country Bank's also lowers 3-year rate

Finally, Queensland Country Bank has taken 10 basis points off its three-year fixed rate to 5.89% p.a. (6.49% comparison rate*) for owner occupiers signing up to its Ultimate Home Loan Package.

The special offer rate is for borrowers with <80% LVR making P&I or IO repayments (6.47% p.a. comparison rate* for IO).

Meantime, fixed rate package loans for investors have increased by up to 20 basis points.

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Joshua Mayo on Unsplash



Disclaimers

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

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