Loans.com.au cuts standard variable offering to 5.46%: A guide to the lowest home loans in 44 years

Online lender loans.com.au has cut the variable rate of its ‘Dream Catcher’ home loan by 19 basis points to 5.46% and says it is offering the lowest standard variable rate home loan since July 1968.

The lender references the loansense.com.au, a website that tracks the movement of home loan rates dating back to 1959.

In July 1968, the average standard variable interest rate was 5.38%.

According to mortgage comparison website Ratecity.com.au, another online lender eMoney is offering a variable rate of 5.40% on its pro pack 75 loan. The lender cut the interest rate on this product by 20 basis points.

A spokesperson for loans.com.au maintains that its offering is the lowest genuine standard variable rate home loan in Australia.

He says the real story is not the loans.com.au offering, but that variable rates on average are at their lowest level since 1968.

Loans.com.au managing director Marie Mortimer says borrowers would have to go travel back in time to the Mexico Olympics to find a cheaper variable home loan interest rate.

“The last time we saw rates this low, the number one record in Australia was Sadie by Johnny Farnham, Rod Laver had just beaten Tony Roche to win Wimbledon and Lionel Rose beat Fighting Harada in Tokyo to become the world bantamweight boxing champion,” she says.

Firstmac is an Australian lender based in Brisbane that has been involved in providing home loans for 30 years. It was founded by Kim Cannon. Firstmac obtains its funding from residential mortgage-backed securities (RMBS) market, also known as securitisation.

Loans.com.au also announced it has cut its three-year fixed home loan rate to 5.35% (comparison rate 5.74%).

On Friday, ANZ cut its standard variable by 20 basis points to 6.6%

Here’s a guide to the lowest standard variable home loan offerings:

Lowest variable rate offerings:

Provider

Loan name

Rate

Comparison rate*

eMoney

Pro Pack 75

5.40%

5.73%

Loans.com.au

Dream Catcher

5.46%

5.74%

State Custodians

Standard variable offset

5.64%

5.81%

Lowest one-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

Greater Building Society

Ultimate Home  Loan Package Standard Fixed 1 year

5.29%

6.04%

Greater Building Society

Great Rate Fixed 1 year

5.34%

5.89%

Newcastle Permanent

Residential Fixed 1 year

5.38%

6.2%

Lowest three-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

Loans.com.au

Three-year fixed home loan

5.35%

5.74%

Newcastle Permanent

Residential Fixed 3 year

5.38%

6.04%

ME Bank

Super Member Fixed Three years

5.39%

6.05%

Source: Ratecity.com.au

*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.

For information on refinancing, watch our free webinar Refinancing and the Interest Rates Riddle

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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