A Tasmanian bank is offering what it believes is Australia's lowest ever home loan interest rate: 1.99 per cent.
The limited time offer by Bank of us is for fixed interest rate loans using its FlexiDiscount product for one, two or three-year terms for up to 90 per cent of property value.
It has also cut its FlexiDiscount variable rate by 0.10 percentage points to 2.83 per cent.
Chief executive Paul Ranson said the bank understood these were challenging times for Tasmanians.
"At times like these, we know Tasmanians have enough to worry about," he said.
"We've introduced an interest rate special so Tasmanians can fix their home loan at a record low rate of 1.99 per cent per annum and have peace of mind in knowing exactly how much their repayments are each month."
Mr Ranson said people were often hesitant to take fixed rates because they worried about being stuck with a high standard variable rate when the fixed rate term ended.
He said Bank of us offered "loan revert" rates that mirrored its best rates, depending on loan to valuation ratio.
The 1.99 per cent fixed rate would be available for a limited time from Tuesday.
The Reserve Bank cut the cash rate to a record low 0.25 per cent in response to the coronavirus crisis.
There appears to be little chance of a substantial increase any time soon.
In the minutes of its June rates meeting, the central bank said: "The board recognised that the substantial, coordinated and unprecedented easing of fiscal and monetary policy in Australia was helping the economy through this difficult period."
"It was likely that this fiscal and monetary support would be required for some time.
"The board remained committed to supporting jobs, incomes and businesses and to making sure that Australia is well placed for recovery.
"Its actions were keeping funding costs low and supporting the supply of credit to households and businesses.
"This accommodative approach would be maintained as long as required."