Lenders become more aggressive with lowest interest rates in years

Home buyers are enjoying some of the lowest fixed rate home loans in years, with lenders becoming more and more aggressive in their fight to snatch market share.

It is helping to fuel Sydney's buoyant property market, but experts say we need to read the fine print.

In a property market this hot buyers are not the only ones in competition.

Banks and other lenders are getting in on the action.

Last week it was big banks making headlines with five year fixed rates dropping to 4.99 per cent.

Now smaller lenders are jumping in – Horizon, IMB, Illawarra Credit Union and Catalyst all dropped their one year fixed rate below four percent, the lowest falling to just 3.95 percent.

While an interest rate with a three in front of it is certainly attractive, buyers should look beyond the flashy headline at the other costs involved.