Called the 'Star Classic' home loan, the online lender joins two others in recent weeks to breach the 2% barrier, though HomeStar can lay claim to the lowest advertised rate by one basis point.

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.

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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

After the one year fixed term ends, the rate reverts to an ongoing variable rate of 2.49% p.a.

The rate is also a 'special offer', and borrowers will have to have their application submitted by 30 September, and approved by 31 December.

Borrowers must be owner occupiers and have a minimum 20% deposit, and there is also an application fee of $495.

Maximum loan size is $850,000 and borrowers are restricted to metro locations.

HSBC, Hume Bank, RACQ bank also cut

In what was a fairly subdued week for rate cuts, a few key lenders did manage to cut for new borrowers.

HSBC

HSBC made a wide variety of cuts to its fixed investment home loans, by up to 41 basis points. Some key cuts were:

  • Investment Fixed P&I 2 Years 80%: 36 basis point cut to 2.39% p.a. (3.29% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years 80%: 41 basis point cut to 2.79% p.a. (3.21% p.a. comparison rate*)

Hume Bank

In the past week, Hume Bank also focused on cuts to fixed home loans, however these were primarily to owner-occupier home loans. A couple of key cuts were:

  • 2 Year Fixed Intro 70%: 10 basis point cut to 2.19% p.a. (4.04% p.a. comparison rate*)
  • Residential Fixed P&I 3 Years: 10 basis point cut to 2.39% p.a. (3.92% p.a. comparison rate*)

RACQ Bank

This morning RACQ Bank cut some home loan rates as 'special offers'. A couple were:

  • Mortgage Saver: 12 basis point cut to 2.75% p.a. (2.77% p.a. comparison rate*)
  • Mortgage Breaker: 12 basis point cut to 2.95% p.a. (3.01% p.a. comparison rate*)

These are variable rates for new lending only. The main difference between the two is that the 'Breaker' has a 100% offset account and a $600 establishment fee.

Meanwhile, RACQ Bank also raised a couple of home loans' interest rates by 15 basis points, including:

  • Investment Fixed 5 Years: Up to 2.94% p.a. (4.10% p.a. comparison rate*)
  • Residential Fixed 5 Years: Up to 2.74% p.a. (3.75% p.a. comparison rate*)


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