May 2021 home loan update: Some of the lowest variable & fixed rates

TAMIKA SEETO
Home loan interest rates are rarely out of the news it seems, as banks chop and change their rates and jostle for position in a competitive market. And with many household budgets stretched due to the economic impact of the coronavirus pandemic, a lower interest rate could be an appealing prospect for those who are in a position to switch.

Owner occupiers are repaying their home loan at an average interest rate of 3.65%, Canstar’s latest Consumer Pulse Report found. However, according to our database, there are a number of owner-occupier home loans with interest rates below 2%. This means many mortgage holders could be in a position to shop around for a better deal.

Many Australians have already successfully secured a lower home loan rate in recent times. Canstar’s report found that 14% of mortgage holders have switched lenders to get a lower rate, with a further 17% intending to switch.

So, what makes for a competitive rate in today’s climate? Canstar has dug deep into its database to find some of the lowest variable and fixed rate home loans.

It’s important to keep in mind, however, that a low interest rate isn’t the be-all and end-all of a home loan. The other aspects of a loan, including its features and fees, can also have a bearing on the cost to you and the quality of the product overall. Consider taking a look at Canstar’s most recent Home Loan Star Ratings for an overall picture of how our experts rated over 3,000 different products, both principal and interest loans and those that allow borrowers to pay interest-only for a period.

When sizing up your options, you can also consider the loan’s comparison rate, which is a percentage rate designed to represent a closer estimate of the total cost of the loan per year. The comparison rate typically takes into account the interest rate as well as most upfront and ongoing fees and charges. It helps customers identify the true cost of the loan.

Please note that the interest rates below don’t take into account your credit history or other factors specific to your application, so not everyone can qualify for the minimum advertised rate. Further eligibility criteria may be assessed and determined by the lender.


Some of the lowest interest rates for fixed rate home loans on Canstar’s database

The comparison tables below display some of the fixed rate home loan products on Canstar’s database with links to lenders’ websites, for refinancing owner-occupiers in NSW making principal and interest repayments on a loan of $350,000 with an 80% LVR. Choose between the 1-year fixed, 3-year fixed and 5-year fixed tabs to view results most relevant to you. The results are sorted by ‘current rate’ (lowest to highest). Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products.

Lowest interest rates for 1-year fixed home loans

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning

Lowest interest rates for 3-year fixed home loans

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning

Lowest interest rates for 5-year fixed home loans

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning

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Some of the lowest interest rates for variable rate home loans on Canstar’s database

The comparison tables below display some of the variable rate home loan products on Canstar’s database with links to lenders’ websites, for borrowers in NSW making principal and interest repayments on a loan of $350,000 with an 80% LVR. You can choose between the refinance, first home and investing tabs to view results most relevant to you. The results are sorted by ‘current rate’ (lowest to highest). Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products.

Lowest interest rates for refinance home loans

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning

Lowest interest rates for first home loans

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning

Lowest interest rates for investing home loans

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning

For some tips on what features you should be looking for in a home loan, read our Choosing A Home Loan Checklist.

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This article was co-written by James Hurwood.


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