Home Mortgage News These lenders offer the lowest variable rates

These lenders offer the lowest variable rates

Published on 08 Jan, 2020

Borrowers should check out this month's best variable loan deals

Borrowers should check out this month's best variable loan deals

The low interest-rate environment has resulted in many lenders dropping their rates to unprecedented levels, and Australians looking to start the year with a property purchase should consider the cheapest home-loan deals currently in the market.

Data from Your Mortgage show that the lowest variable rate currently in the market is UBank’s 2.84%. This owner-occupier offer is on a principal-and-interest basis and is available for borrowers with at least a 20% deposit. For a $550,000 loan amount, the monthly repayment for this loan sits at around $2,272.

Also read: 4 factors that define the best home loan deal

Loans.com.au also offers a low variable rate at 2.88% under its Smart Home Loan package. For a loan amount of $550,000, borrowers will need to shell out around $2,283 for monthly repayments.

Citi's Variable Rate with Mortgage Plus offer is currently at 2.96%. However, this product has a 3.35% comparison rate, due to the annual package and settlement fees it comes with. This package offers a Citibank Plus transaction account and a choice of Citi credit card with zero or reduced yearly fees.

CUA's Achievable Variable loan product also has a sub-3% variable rate. At a variable rate of 2.98%, borrowers will only need to pay $2,313 monthly for loan amount of $550,000. This product offers free multi-account offset, free redraw, and unlimited extra repayments. However, it has several fees, bringing its comparison rate to 3.03%.

To know more about this month's rates, check out Your Mortgage's Home Loan Comparison Tool by clicking here.

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The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, InfoChoice.com.au, YourMortgage.com.au, YourInvestmentPropertyMag.com.au, and Performance Drive are part of the InfoChoice Group. In the interest of full disclosure, the InfoChoice Group is associated with the Firstmac Group. Read about how Infochoice Group manages potential conflicts of interest, along with how we get paid.

Savings.com.au Pty Ltd ACN 161 358 363 operates as an Australian Financial Services Licensee and an Australian Credit Licensee Number 515843. Savings.com.au is a general information provider and in giving you general product information, Savings.com.au is not making any suggestion or recommendation about any particular product and all market products may not be considered. If you decide to apply for a credit product listed on Savings.com.au, you will deal directly with a credit provider, and not with Savings.com.au. Rates and product information should be confirmed with the relevant credit provider. For more information, read Savings.com.au's Financial Services and Credit Guide (FSCG) The information provided constitutes information which is general in nature and has not taken into account any of your personal objectives, financial situation, or needs. Savings.com.au may receive a fee for products displayed.

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We strive to cover a broad range of products, providers, and services; however, we do not cover the entire market. Products in our comparison tables are sorted based on various factors, including product features, interest rates, fees, popularity, and commercial arrangements.

Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes.

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Comparison Rate Warning and Base Criteria

For home loans, the base criteria include a $500,000 loan amount over 30 years. These rates are only examples and may not include all fees and charges.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

Related Brands

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We may include products and services from loans.com.au, CarLoans.com.au, OnlineAuto.com.au, and YourMortgageBroker Pty Ltd, all associated with the Firstmac Group. Importantly, these brands are treated like any other commercial partner.

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The information provided by YourMortgage.com.au is general in nature and does not take into account your personal objectives, financial situation, or needs. We recommend seeking independent financial advice before making any financial decisions. Before acquiring any financial product, obtain and read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD), and any other offer documents.

Rates and product information should be confirmed with the relevant credit provider. For more information, read YourMortgage.com.au’s Financial Services and Credit Guide (FSCG).