Want a 4.99% home loan rate? This tiny lender is beating the big 4

Small, obscure home loan lender offers one of Australia's cheapest variable rates

A little-known home loan lender is challenging the big banks by offering one of Australia's cheapest variable interest rates.

Building Society Teachers Mutual Bank is offering a variable rate of just 4.99% for owner-occupiers with a loan-to-value ratio (LVR) of up to 80%.

This rate is well below the average variable rate of 5.36% offered by the big four banks.

Who is Teachers Mutual Bank?

Teachers Mutual Bank is a small, customer-owned lender that has been operating in Australia for over 70 years.

The bank has a strong focus on providing competitive interest rates and low fees to its members.

Teachers Mutual Bank is not a bank in the traditional sense. It is a building society, which means it is owned by its members rather than by shareholders.

How can Teachers Mutual Bank offer such a low rate?

There are a number of reasons why Teachers Mutual Bank can offer such a low rate.

• The bank has a low cost base.
• The bank is not listed on the stock exchange, so it does not have to pay dividends to shareholders.
• The bank has a strong focus on providing competitive interest rates to its members.

Is Teachers Mutual Bank a safe place to keep my money?

Yes, Teachers Mutual Bank is a safe place to keep your money.

The bank is regulated by the Australian Prudential Regulation Authority (APRA) and is a member of the Financial Claims Scheme.

This means that your deposits are protected up to $250,000 if the bank fails.

Should I switch to Teachers Mutual Bank?

If you are looking for a competitive interest rate on your home loan, then Teachers Mutual Bank is worth considering.

The bank's variable rate of 4.99% is one of the cheapest in the market.

However, it is important to compare the bank's rates and fees with other lenders before making a decision.