The average interest rate of home loan rates offered by lenders in Australia ranges from 3.09% to 3.99. There are a few institutions which offer lower, with only 2.99% interest, and only a handful provide even lower than this. One of the lowest is from Greater Bank who presents only 2.79% on their fixed-rate loan.

Greater Bank’s Great Rate Home Loan offers a 2.79% interest rate for a 1-year fixed-term loan. Although it’s just a 20-basis-point cut from the typical rates, the company has already made a massive reduction of about 70 basis points in total since July 2019.

When the Great Rate Home Loan is compared with loan plans offered by other lenders, almost a 1% difference can be seen in their fixed-rate loans. This is one of the primary reasons why Greater Bank’s home loan programs are immensely popular.

Advantages of the Greater Bank Home Loan

Greater Bank’s home loan plans are designed to make it easier for everyone to get their own house. Aside from offering the lowest interest rates, the loan provides even more benefits to clients.

1)      Low fees

There are very few lenders in Australia who can match the competitive rate of the Great Rate loan. There are also no monthly or annual fees associated with the home loan which means repayments are paid into the actual balance and not into the additional charges.

2)      High loan-to-value (LVR)

The Great Rate loan enables clients to borrow up to 90% of the property’s value, which means it’s possible to own a house with as little as 5% cash out deposit. There are associated Lender’s Mortgage Insurance (LMI) fees, though, whenever a loan exceeding 80% of the value is made.

3)      Flexible repayment terms

Clients can choose when to make the repayments for maximum flexibility. It can be made weekly, fortnightly, or monthly, depending on their lifestyle and ability to pay.

It’s also possible to repay the interest first for the first 5 to 10 years of the loan term. For investors, this option comes with tax benefits.

Extra repayments are also allowed under the Great Rate Home Loan for up to 5% of the outstanding balance.

4)      Redraw facility

Clients can redraw the extra payments they made, giving them flexible access to additional funds in case they need it for unexpected circumstances in the future.

As it’s a fixed rate home loan, there will be break costs that clients must pay if ever they decide to discontinue the loan repayments within the prescribed period. A $300 exit fee will be charged to the client in this situation.

Aside from the 1-year fixed-rate home loan with 2.79% interest, Greater Bank also offers extended 5-year fixed-rate loans with interest rates as low as 2.99% p.a. only.

Applying for the Loan

Owner-occupiers and investors are welcome to apply for Greater Bank’s home loan. Home refinancing is also offered to those who already have existing loans. A loan calculator can be found on the Greater Bank website for easier visualization on how repayments must be made based on the entered loan amount.

The Greater Bank Great Rate Home Loan requires applicants to submit full documentation regarding their income, debts, and assets to verify their capability to repay the loan. For inquiries, basic details about your personal information and the planned loan amount will be required by the bank.