Photo: Unsplash/ Artful Homes
First-home buyers are being offered a home loan rate of 3.99 percent - which one adviser is describing as "cashback on steroids".
SBS is advertising the rate for first-home buyers for a limited time.
Its chief executive Mark McLean said SBS lent money to 1479 first-home buyers last year and they saved $156 a fortnight compared to the big banks.
At present, SBS is offering a 4.79 percent one-year rate to the wider market, in line with that of the big four banks.
First-home buyers with SBS also get contributions to insurance.
David Cunningham, chief executive at Squirrel, said first-home buyer offers were not unusual.
The Co-Operative bank is offering 1 percent cashback to first-time buyers, up to $15,000.
He said the banks were aiming to attract customers and build long-term relationships.
"They're not necessarily making a lot of money... It's a bit like cash back on steroids."
He said it was possible borrowers could ask other banks what they could do to compete with the SBS rate.
"My gut feeling is you're unlikely to get 3.99 percent from the others but the cashback might be bigger, banks might be willing to negotiate on that."
Glen McLeod, head of Link Advisory, said SBS had been offering similar, short-term deals for some time and other banks were not inclined to try to match it.
"It gives people a way in, that's great... it's their hook. You can't argue with that if it's saving people money."
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