After home loan rates dipped under 2% a week ago, with Loans.com.au offering introductory rates of 1.99%, Homestar Finance have pipped them as the lowest variable rate in Australia, with a one-year fixed rate of 1.98%.
As Rate City reports, the loans do revert to an ongoing variable rate of 2.49 per cent, plus required a 20% deposit and upfront fees of $1,010.
Sally Tindall, research director at RateCity.com.au, said today’s rate cut signals ‘game on’ for title of Australia’s cheapest home loan.
“At 1.98 per cent, this is the lowest fixed rate available to everyday Australians, but it’s important to remember it only lasts for a year. That said, the revert rate is still significantly lower than the big four banks’ variable rates,” she said.
“It’s starting to feel like the end of an auction where the competitors are edging each other on in small increments.
“But they’re all playing ball, pushing each other below the 2 per cent barrier.
“We expect rates to keep nudging lower over the next few months as lenders try to capitalise on the current refinancing boom.”