Tasmanians offered lowest home loan rate in 50 years

Home ownership in Tasmania just became easier, with one of the lowest variable home loan interest rates that Australia has seen in the past 50 years.

MyState Bank General Manager of Retail, Huw Bough, said the new rate of 3.99% was available with MyState’s new Special Residential Home Loan.

“The new Special Residential Home Loan is the lowest interest rate ever offered by MyState and it gives Tasmanians the best shot at owning their own home,” Mr Bough said.

“Real Estate Institute of Tasmania figures show house sales across the state have continued to increase for the past three quarters, with increasing numbers of investors driving sales – especially interstate and overseas buyers, who contributed to more than 20 per cent of Tasmanian house sales for the first time in the June quarter.”

“All around Australia, people are concerned that they are being squeezed out of their local housing markets by ever-increasing prices, much of it driven by investors.”

Mr Bough said not only did a variable interest rate of 3.99% make the home loan itself more affordable, but by making the loan exclusively for owner-occupiers, MyState was ensuring it did not place further pressure on Australia’s housing market.

“Since the Reserve Bank of Australia cut official interest rates last May, home loan interest rates have fallen only slightly, with none of the major lenders offering anything below 4%,” he said.

“It’s great to see Tasmania’s locally owned bank challenging the big four and leading the way in the home loan market.”

MyState’s Special Residential Home Loan is available exclusively to owner-occupiers, looking to borrow more than $100 000 or up to 80% of the cost of their property, and is payable on both the principal and interest.

MyState is a wholly owned subsidiary of MyState Limited, and has been providing banking services to Tasmanians for over 50 years, with 120,000 people in Tasmania and beyond choosing to bank with them.

Josh and Ellen Breganti, with their 9 month old baby, Noah. The Breganti family is currently saving for their first home and are shopping about for a home loan. Meanwhile, they are living with Ellen’s parents, but look like they’re well and truly ready to move out.

Comparison rate is 4.02% per annum, based on $150,000 over 25 years. Warning: this comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Lending, credit criteria, terms/conditions, fees and charges apply and are subject to change.