Lenders announce new home loan discounts
Fierce competition amongst Australian lenders has led to a raft of rate cuts. Following the Reserve Bank of Australia’s August rate cut, home loan rates have continued to trend down in September and October 2016.
Twenty per cent of all Australian home loan deals are now priced at under four per cent. That is more than 150 mortgage products issued by Australian lenders with pricing under four per cent.
Borrowers with 20 per cent equity or a twenty per cent deposit to offer to lenders are snapping up deals under 3.8 per cent right now.
What is the lowest variable rate home loan rate in Australia now?
In October 2016, the lowest variable home loan rate in the Australian market is 3.36 per cent (comparison rate 3.40 per cent) from Homestar’s Basic Refinance mortgage product. This loan is available for borrowers with 30 per cent equity.
Mortgage House’s Pure and Simple Spring Special is currently priced at 3.39 per cent (comparison rate is also 3.39 per cent) for loan to valuation ratios of 30 per cent or under.
Loans.com.au’s Purchase Essentials 80PI loan has a variable rate of 3.39 per cent with a comparison rate of 3.41 per cent for loan to valuation ratios of up to 80 per cent.
New loan deals announced for Australian borrowers
Suncorp Bank has announced changes this week to its Back to Basics discounted home loan range. The Suncorp Back to Basics home loans now start at 3.71 per cent for owner occupiers on loans over $150,000 with a maximum loan to valuation ratio of 90 per cent.
Suncorp Group's Steve Degetto said: “We have waived the upfront loan establishment fee and there are no ongoing account keeping fees on the new Back to Basics home loan and transaction account.”
Mr Degetto said Suncorp Bank is also offering discounts on new ‘Home Package Plus’ mortgages which feature fixed rates. Two and three year fixed rates now start at 3.64 per cent for owner-occupiers and 3.89 per cent for property investors.
Credit Union Australia (CUA) has announced a new offer for investors. The CUA Kick Start Variable Home Loan (Investor) has an introductory rate of 3.99 per cent and an ongoing variable rate of 4.39 per cent (comparison rate 4.37 per cent).