Freedom Lend made quite a few changes, including cuts by up to 50 basis points for its fixed loans.
For example, the 'Freedom Fixed' loan paying principal & interest (P&I) fixed for three years is now 2.24% p.a. (2.44% p.a. comparison rate*).
This is for borrowers with 80% LVR, i.e. 20% deposits. A 95% LVR loan is also available.
In contrast, Freedom Lend cut a couple of variable loans only by between 5 and 10 basis points.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.69% p.a. | 6.16% p.a. | $2,899 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure |
Illawarra Credit Union also cut a wide variety of home loans, most notably its fixed 'The Works' packaged loans.
The Works packaged loan fixed for one year paying P&I was cut by 45 basis points down to 2.34% p.a. (3.00% p.a. comparison rate*).
AMP was another to cut rates on packaged loans in the past week.
For example, the 'Professional Package' series was cut by up to 30 basis points for investors.
Paying P&I, the two year fixed package rate is now 2.49% p.a. (3.76% p.a. comparison rate*).
That said, AMP did introduce some Professional Package variable loans for owner-occupiers, aimed at refinancers with the equivalent of 40% deposits (60% LVR).
Where to find competitive variable rates
You could look at the table above to see some of the more competitive variable offers in the market at the moment.
Upwards of 35 lenders have home loans below the 2.00% p.a. advertised rate threshold these days, yet only a handful are for variable home loans.
The big four, for example, introduced sub-2% home loans only for packaged loans, fixed for four years, and generally speaking, lenders laid a massive stinker for borrowers following the Reserve Bank's latest cash rate cut.
In the past week, Reliance Bank and Credit Union SA did manage to either introduce or cut some variable loans, but only by up to 10 basis points.
For example, Reliance Bank cut its 'All in One' variable home loan for owner-occupiers paying P&I, though it's a two-year intro rate offered as a 'discount'.
It was cut by just 5 basis points down to 2.85% p.a. (4.19% p.a. comparison rate*).
Meanwhile, Credit Union SA introduced a couple new variable loans.
One is a variable packaged loan for first home buyers, which features an interest rate of 2.99% p.a. (3.41% p.a. comparison rate*).
As always, check the lenders' websites to learn about the conditions and 'discount offer' periods of each 'special offer' home loan.
Thus far, in the 'rate war', many lenders have been most willing to introduce their most competitive loans in the fixed, packaged loan space.
While fixed home loans can provide repayment certainty, which could be crucial during a recession, they have their downsides as well.
Most notably, rates are already feasibly at their lowest for the next few years, and breaking out of a fixed loan early could cost thousands.
They can also be more restrictive in how many early repayments you can make and so on.
Meanwhile, packaged loans bundle up credit cards and other products you might not need for extra fees, which is often reflected in the comparison rate.
Photo by Sincerely Media on Unsplash
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