Brighter Buying

Breaking news: home loan rates have dropped below 2%

by Kate Watt, Marketing Manager 2 July 2020

An Australian bank has just made history, Canstar reports, becoming the first ever lender in its database to offer home loan interest rates below 2%.

Tasmanian-based Bank of us has introduced special offer interest rates of just 1.99% on its one-year, two-year and three-year fixed home loans for owner occupiers.

What’s the catch?

The offer is open for a limited time to new customers who are Tasmanian residents.

Doh.

But if you’re a Brissie buyer, the good news is that many other lenders are still in a race to the bottom of the interest rate barrel.

“It’s early days, but the property market signals of recent weeks are suggesting a softer landing than many have feared, and lenders are continuing to react, with low interest rate records tumbling by the week,” says Canstar finance expert Steve Mickenbecker.

Canstar reports Freedom Lend has introduced a new variable rate loan special at 2.17% for refinancers and owner-occupiers who have a loan-to-value (LVR) ratio of up to 70% and apply by 31 July, 2020.

Reduce Home Loans has also introduced a new Owner Occupied Super Saver Variable loan, with a rate of 2.19% available for borrowers with an 80% LVR – in other words you’re borrowing up to 80% of the property value.

“Current low rates make it a great time for many borrowers to ease the family budget with lower repayments,” Mr Mickenbecker said.

“For those coming out of COVID-19 in good financial shape, lenders are competing hard for their business.”

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