Reduce Home Loans has cut the standard variable rate on its Super Saver Variable to 2.19 per cent, which comparison site Canstar says is a new benchmark for the mortgage market.
The previous lowest rate was 2.25 per cent, which Reduce Home Loans was offering on loans with loan-to-valuation of 60 per cent or less. The new rate is available on loans with LVRs of 80 per cent or less.
Canstar says that for loans with LVRs of 80 per cent or more, the best rate is Tic:Toc’s offer of 2.39 per cent.
The average variable mortgage rate in the Canstar database is 3.47 per cent.
The lowest fixed mortgage rate is 2.09 per cent, which HSBC is offering for two years on loans with LVRs up to 80 per cent and ING Bank is offering for two years on loans with LVRs up to 95 per cent.
The lowest three-year rate of 2.14 per cent, which ING Bank is offering, and the lowest five-year rate is 2.49 per cent, which RACQ Bank is offering.