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Is this Australia’s cheapest home loan?

(Source: Getty, various)

There’s a new low home loan interest rate in town, and it’s the cheapest currently available in the market.

Well Home Loans at the time of writing has the lowest interest rates around, offering customers 2.74 per cent for a two- or three-year fixed rate (with a comparison rate of 2.96 per cent and 2.94 per cent respectively).

The new rate means Well Home Loans has overtaken Greater Bank’s one-year fixed rate of 2.79 per cent.

Several lenders have interest rates of 2.99 per cent, such as Bank of Queensland, Virgin Money, U Bank, and IMB Bank.

Well Home Loan’s Well Balanced Home Loan also features 100 per cent offset, redraw facilities, and additional repayments with a maximum loan-to-value ratio (LVR) of 80 per cent.

It’s the latest move in the interest rate war as lenders vie for customers amid Australia’s historic low-interest rate environment.

Just last month, the cheapest interest rates all started with a ‘3’ – but the Reserve Bank of Australia’s interest rate cuts in June and again in July have changed all of that, driving lenders to continually push down rates to capture customers.

In June, the Barefoot Investor earmarked Reduce Home Loans as the cheapest variable mortgage rate at 3.09 per cent, alongside Tictoc, Loans.com.au and Athena at 3.27 per cent, 3.28 and 3.34 per cent respectively.

But if you’re looking for a cheaper interest rate on your home loan, you don’t need to refinance: it could be as easy as picking up the phone.

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The inaugural Yahoo Finance All Markets Summit will launch on September 26 in Sydney's Shangri-La.