Firstmac’s online lending subsidiary loans.com.au has claimed bragging rights for taking variable mortgage rates below 2 per cent, launching a one-year offer of a discount variable rate of 1.99 per cent, reverting to 2.57 after the discount period.
The offer is available to new borrowers applying for an owner-occupier, principal and interest mortgage up to a maximum loan-to-valuation ratio of 80 per cent.
Fixed mortgage rates moved under 2 per cent last month, when Bank of us launched one, two and three-year offers of 1.99 per cent for loans with LVRs up to 80 per cent.
Canstar has calculated the difference in interest payments over the life of a 30-year loan with this loans.com.au offer and the current lowest ongoing variable rate of 2.19 per cent, on offer from Reduce Home Loans.
A borrower with a A$400,000 loan would pay interest of $171,555 over the life of the loans.com.au loan and $146,038 over the life of the of the Reduce loan.
Other lenders offering cheap variable rates include Community First Credit Union, which has a two-year introductory variable rate of 2.29 per cent, reverting to 3.74 per cent.
Freedom Lend is offering a variable rate of 2.39 per cent on principal and interest loans with LVRs up to 80 per cent.
Homestar Finance is offering 2.39 per cent on owner occupier loans between $150,000 and $850,000 and with LVRs up to 80 per cent.
And TicToc Home Loans is also offering 2.39 per cent on owner occupier, principal and interest loans.