Borrow
Where can you get a mortgage rate under 2 per cent?
New mortgage-holders can now get rates for below 2 per cent, as authorised deposit-taking institutions fight for new business.

Where can you get a mortgage rate under 2 per cent?
New mortgage-holders can now get rates for below 2 per cent, as authorised deposit-taking institutions fight for new business.

According to comparison site Canstar, the official home loan rate offered by Tasmanian-owned Bank of Us is introducing one-, two-, and three-year fixed home loan rates at 1.99 per cent.
Canstar’s finance expert, Steve Mickenbecker, believes the savings on offer for home owners are the biggest that have been seen yet.
“Bank of Us has come from nowhere in the rate race to now be the market leader at 1.99 per cent, having cut rates by 0.60 per cent for one- and two-year fixed rates and 1.14 per cent for three-year fixed,” Mr Mickenbecker said.
He explained that investors could potentially save six figures on their loan due to the new rates.
“Switching from the average variable rate of 3.47 per cent to a 1.99 per cent fixed rate on an average $400,000 loan can put $313 per month or over $3,700 a year back in borrowers wallets,” Mr Mickenbecker said.
Canstar explained that over the life of a loan, the average variable rate of 3.47 per cent would see a home owner pay $244,215 in interest, while swapping to a rate of 1.99 per cent means they only pay $131,532 in interest.
“The difference a rate below 2 per cent can make is huge,” Mr Mickenbecker said.
While highlighting the offer is only for fixed interest rates, the finance expert questioned how long it would take for variable rates to follow.
Did you enjoy this article? You may also be interested in:
- Almost 1 million mortgage-holders don't check their rate; Are you one of them?
- CBA to drop mortgage repayments next week
- Will personal loans affect my mortgage application
About the author

About the author


Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. ...Read more

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. ...Read more

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more