The 124 basis point cut belonged to the variable investment Low Rate Essentials home loan for LVRs over 85%.
The rate is now down to 3.60% p.a. (3.62% p.a. comparison rate*)
Borrowers with LVRs up to 85% also saw the same home loan cut by 104 basis points, now down to 3.40% p.a. (3.42% p.a. comparison rate*).
Owner-occupiers also saw some big cuts, with the variable Low Rate Essentials product with a maximum 90% LVR seeing a 95 basis point haircut - now down to 3.15% p.a. (3.18% p.a. comparison rate*).
Elsewhere, it was a subdued week for rate changes, with Australian Unity the only other lender of note to cut in the past seven days.
Some home loans to see changes were:
- Health Wealth Happiness Fixed P&I 1 Year: 15 basis point cut to 2.59% p.a. (2.91% p.a. comparison rate*)
- Health Wealth Happiness Fixed P&I 3 Years: 15 basis point cut to 2.59% p.a. (2.86% p.a. comparison rate*)
- Kick Starter Discount Variable P&I: 15 basis point cut to 2.59% p.a. (2.62% p.a. comparison rate*)
Various other packaged and non-packaged loans for both owner-occupiers and investors were cut by between 10 and 15 basis points.
Note that 'discounts' and 'special offers' could expire at any time.
New 'lowest ever' home loan
At the start of the week, Reduce Home Loans also introduced its 'lowest ever' home loan.
Called the 'Rate Cutter', it's a variable product for owner-occupiers, primarily aimed at those with either a big deposit or those who are refinancing and have built up some equity, as it has a maximum LVR of 60%.
The rate is 1.89% p.a. (1.92% p.a. comparison rate*).
Reduce also has another sub-2% advertised rate home loan for borrowers with a smaller deposit.
Overall, in Savings.com.au's market research, there are ten lenders offering sub-2% home loans.
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