Interest rates on home loans in Australia are now less than 2 per cent.

At Bank of us the fixed rate special is 1.99 per cent, for one, two or three-year terms up to 90 per cent of property value on the Bank of us FlexiDiscount Home Loan product.

“People are often hesitant to take on a fixed rate as they worry that they’ll be stuck with a high standard variable reference rate at the end of the fixed rate term,” CEO Paul Ranson said.

“At Bank of us, we do things a little differently, by offering loan revert rates that mirror our best rates in market, dependent on the loan to value ratio.

“With this in mind, we’ve gone ahead and reduced our FlexiDiscount variable rate for lending below 80 per cent property value by 10 bps to 2.83 per cent.”