Let's face it - 2020 sucked for a lot of people (and 2021 is looking not much better) but those looking for a more affordable home loan were treated to a bevy of rate changes.

Two lenders have made some rate changes already, including HomeStar Finance, which cut on New Year's Day when most people were dozing off:

  • Star Fixed 2 Years P&I 80%: 56 basis point cut to 1.88% p.a. (2.26% p.a. comparison rate*)

HomeStar also cut the equivalent 70% LVR loan by 46 basis points. Borrowers must apply for this 'special' rate by 31 January and have the loan settled by 30 April.

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.
6.06% 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
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 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

Conversely, HomeStar also had a few home loan rate rises, presumably as special offers came to an end, including some investment home loans raised by up to 46 basis points.

Some owner occupier loans were also hiked by up to 54 basis points.

QBank was another institution to make some cuts to home loans under 2%.

  • Fixed 2 Years: 2 basis point cut to 1.97% p.a. (3.54% p.a. comparison rate*)
  • Fixed 4 Years: 2 basis point cut to 1.97% p.a. (3.26% p.a. comparison rate*)

These home loans are for owner occupiers paying principal and interest (P&I) with a maximum loan-to-value (LVR) of 90%, and are 'special offers', meaning they could change at any time.

QBank also tinkered with its home loans, raising others by up to 15 basis points, as new 'special offers' took effect and as old offers expired.

There are now at least 35 lenders with a home loan below the 2% advertised rate mark.

Photo by Immo Wegmann on Unsplash



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