The regional bank's new lowest rate of 5.25% p.a. (5.62% p.a. comparison rate*) is open to owner-occupiers with less than 60% loan-to-value ratio (LVR), making principal and interest (P&I) repayments, and fixing for two years.

It's the lowest fixed home loan rate available on the market outside of green home loan products where finance is subsidised via the federal government's Clean Energy Finance Corporation.

Regional Australia Bank, headquartered in Armidale, New South Wales, has knocked 36 basis points off its old rate to hit the new low.

Borrowers with 60-70% LVR can also lock in for two years at 5.25% p.a. (5.66% p.a. comparison rate*).

Here are Regional Australia Bank's new fixed rates for owner-occupiers, making P&I repayments:

LVR Fixed period % change New rate Comparison rate*
<60% 1 year -0.32 5.40% p.a. 5.67% p.a.
2 years -0.36 5.25% p.a. 5.62% p.a.
3 years -0.30 5.30% p.a. 5.59% p.a.
4 years -0.22 5.52% p.a. 5.64% p.a.
5 years -0.14 5.74% p.a. 5.72% p.a.
60-70% 1 year -0.32 5.40% p.a. 5.73% p.a.
2 years -0.36 5.25% p.a. 5.66% p.a.
3 years -0.30 5.30% p.a. 5.63% p.a.
4 years -0.22 5.52% p.a. 5.68% p.a.
5 years -0.14 5.74% p.a. 5.72% p.a.
70-80% 1 year -0.27 5.50% p.a. 5.79% p.a.
2 years -0.31 5.35% p.a. 5.73% p.a.
3 years -0.26 5.39% p.a. 5.70% p.a.
4 years -0.18 5.61% p.a. 5.75% p.a.
5 years -0.10 5.83% p.a. 5.83% p.a.
80-90% 1 year -0.40 5.68% p.a. 6.09% p.a.
2 years -0.24 5.52% p.a. 6.02% p.a.
3 years -0.39 5.57% p.a. 5.98% p.a.
4 years -0.31 5.79% p.a. 6.02% p.a.
5 years -0.24 6.01% p.a. 6.09% p.a.
>90% 1 year -0.34 6.16% p.a. 6.52% p.a.
2 years -0.39 6.00% p.a. 6.45% p.a.
3 years -0.33 6.05% p.a. 6.42% p.a.
4 years -0.26 6.27% p.a. 6.46% p.a.
5 years -0.18 6.49% p.a. 6.53% p.a.

Investor fixed rates also cut

Investor rates were also dropped across the board with Regional Australia Bank's new lowest investor rate 5.46% p.a. (5.75% p.a. comparison rate*).

It applies to investors with LVRs below 60%, making P&I repayments, and fixing their loans for two years.

Investor rates jump by 25 basis points for those making interest-only (IO) repayments.

See also: Compare interest-only home loan rates

Are borrowers taking up fixed rates?

Fixed home loan rates have been on the downhill since mid-last year in preparation for long-anticipated cuts to the Reserve Bank of Australia cash rate.

The RBA board delivered its first cash rate cut in more than four years in February and markets are gearing up for another cut to the cash rate in May.

In an environment where rates are forecast to fall, it's understandable borrowers are hesitant to lock themselves into a fixed home loan rate for an extended period as variable rates head lower.

See also: How to choose between a fixed-rate and a variable-rate home loan

Lending data from the Australian Bureau of Statistics (ABS) shows new borrowers continue to shun fixed home loans, which account for around 2% of overall new home lending by value.

Will interest rates head lower?

The RBA's new Monetary Policy Board is set to meet next on 19-20 May to determine Australia's cash rate setting.

Economists at Australia's largest home lender, Commonwealth Bank of Australia, have made the big call that a rate cut is a "done deal" - if inflation drops in line with its expectations.

The ABS's quarterly inflation data is due to be released on Wednesday 30 April and is widely tipped to show Australia's underlying inflation rate is within the RBA's target band of 2-3%.

CBA analysts believe there will be a 25-basis point cut to the cash rate next month with two more to come in August and November, bringing the cash rate to 3.35% by the end of the year.

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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 TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
5.79% p.a.
5.83% p.a.
$2,931
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • 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
5.74% p.a.
5.65% p.a.
$2,915
Principal & Interest
Variable
$0
$0
80%
  • 100% owned by Commbank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • 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
5.84% p.a.
6.08% p.a.
$2,947
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 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

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