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Greater Bank offering 3.59% interest-only loans
There are still a surprising number of lenders offering interest-only rates under 4 per cent, a new study of the mortgage market has found.
At the end of July 2018, the average rate for all the variable, owner-occupied,interest-only mortgageslisted on RateCity was 4.77 per cent.
This compares to an average rate of 4.39 per cent at the end of March 2017, which was when APRA, the banking regulator, called on lenders to limit their interest-only lending.
Greater Bankhas a one-year fixed-rate interest-only loan that starts at 3.59 per cent, although the comparison rate is 4.67 per cent.
Mortgage House,CUA,Homestar Finance,Newcastle Permanent, Move Bank,BCU,Suncorp BankandState Custodiansare some of the other Australian lenders that offerinterest-only mortgagesfor less than 4 per cent.
Here are some of the cheapest interest rates in Australia for owner-occupiers who want a $400,000interest-only mortgage with a 30-year term and a maximum loan-to-value ratio (LVR) of 80 per cent:
| Lender | Product | Advertised rate | Comparison rate |
|---|---|---|---|
| Greater Bank | Ultimate Home Loan (1yr fixed) | 3.59% | 4.67% |
| Mortgage House | Affordable First Home Buyer Special | 3.64% | 3.68% |
| Homestar Finance | Variable Owner Occupied Home Loan | 3.74% | 3.79% |
| CUA | Balanced Variable (construction) | 3.75% | 3.67% |
| Newcastle Permanent | Premium Plus Package (1yr fixed) | 3.79% | 4.75% |
| Move Bank | Flexi Fixed Home Loan (1yr fixed) | 3.79% | 4.81% |
| BCU | OMG Home Loan | 3.89% | 3.84% |
| Suncorp Bank | Home Package Plus (2yr fixed) | 3.89% | 4.71% |
| State Custodians | Low Rate Home Loan | 3.93% | 3.94% |
Please note that the cheapestinterest-only home loanmay not be the bestinterest-only home loanfor your situation.
Disclaimer
This article is over two years old, last updated on August 27, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 15 Nov, 2024
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