The home loans in question were the 'Home Package Plus' products for owner occupiers paying interest-only, fixed for two and three years with a maximum loan-to-value ratio (LVR) of 90%: 

  • Two Years: Down to 2.74% p.a. (3.94% p.a. comparison rate*)
  • Three Years: Down to 2.74% p.a. (3.85% p.a. comparison rate*)

The equivalent non-packaged loans were also cut by a full percentage point, but the advertised rate is 15 basis points higher, as seen below:

  • Non-Package Two Years: Down to 2.89% p.a. (4.76% p.a. comparison rate*)
  • Non-Package Three Years: Down to 2.89% p.a. (4.60% p.a. comparison rate*)

As always, check the comparison rate, and check the fees associated with both packaged, and standard home loans.

Other noteworthy Suncorp home loans to get slashed include the 'Home Package Plus' line, again for owner occupiers, but this time paying principal & interest and fixed for one year.

These home loans were cut by 25 basis points, and the comparison rate differs based on the size of the deposit:

  • <80% LVR: Down to 2.04% p.a. (2.92% p.a. comparison rate*)
  • <90% LVR: Down to 2.04% p.a. (3.04% p.a. comparison rate*)

Note, these two home loans are listed as 'special offers', meaning they could end at any time.

What about investors?

Suncorp also changed an incredibly wide variety of rates for investors - again, mostly in the fixed space. Some more noteworthy ones included:

  • Inv Home Package Plus Fixed P&I 80% 2 Years: 21 basis point cut to 2.28% p.a. (3.20% p.a. comparison rate*)
  • Inv Fixed P&I 2 Years 90%: 21 basis point cut to 2.73% p.a. (5.10% p.a. comparison rate*)

Some interest-only home loans also got a haircut, which are favoured by some investors. Noteworthy ones include:

  • Inv Home Package Plus Fixed IO 80% 2 Years: 10 basis point cut to 2.49% p.a. (3.22% p.a. comparison rate*)
  • Inv Fixed IO 2 Years 90%: 10 basis point cut to 2.94% p.a. (5.14% p.a. comparison rate*)

Archistar chief economist Dr Andrew Wilson said the investor market is creeping back but remains at 'record low' levels.

"Investors have clearly now joined the stampede of buyers rushing housing markets, but the overall home loan market share of investors remains at record low levels, offsetting any concerns by the RBA and financial regulators of potential market disruption," he said.

“Although investor lending is on the rise, the overall residential loan market share remains at record low levels with current strong prices growth clearly driven by unprecedented owner-occupier lending activity."


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

Question mark over 'record low' fixed home loan rates

Fixed home loans grew their marketshare in 2020, with the likes of CommBank indicating that its fixed loan book grew 38% in the second half of 2020 compared to the first half.

One big reason for this is the Reserve Bank's 'term funding facility' (TFF), which is providing up to $200 billion in low-cost funding for banks, repaid over three years.

With the Reserve Bank due to 'reshape' the TFF in June, this could spell the end for 'record low' fixed rates by July according to Firstmac CFO James Austin.

“If you look at where the banks are offering mortgage rates, their variable rates are not down, they’re still very expensive," he told Mortgage Professionals Australia.

“Those fixed rates will disappear but customers who have been put into these sub-2% rates, at the end of three years they are going to be repricing fairly heavily to the bank’s standard variable - so just question whether that’s in the best interest of the customer.”

Full disclosure: Firstmac is a non-bank lender, and is parent company of this website.

Photo: Harrison Astbury



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