It was only a fortnight ago that Loans.com.au broke the 2 per cent floor, offering introductory home loan rates of 1.99 per cent.
Then Homestar Finance shaved 0.01 per cent off their variable rates, with a one-year fixed rate of 1.98 per cent.
Now it’s Easy Street Financial stepping up, with an ongoing variable rate of 1.95 per cent.
The rate is available for owner-occupiers paying principal and interest on loans of $750,000 or more, with a deposit of over 20 per cent.
This is despite the RBA holding steady this week on the 0.25 per cent cash rate.
“Home loan rates keep on falling as the low-cost lenders chase each other under the 2 per cent barrier,” Sally Tindall, research director at RateCity.com.au, said.
“This competition between the banks is motivating people to switch lenders.
“ABS figures show a 73 per cent increase in external refinances from June last year.”
Last month, RBA Governor Philip Lowe encouraged customers to take advantage of these low deals.
“I encourage people who haven’t already taken up the opportunity to do that to look at their mortgage rate and look for a better deal,” he said.
“I’ve been encouraging people to look at the rate they were getting from their bank, and if they weren’t getting a very low rate, go and knock on the door and set up a Zoom conference with their banker and ask for a better deal.
“And if the bank said no, go to another bank.”
Community First Credit Union are also offering two-year fixed rates of 1.99 per cent, meaning four lenders have dropped their rate to below the 2 per cent mark.
