Illawarra Home Loans has sliced its First Home Fixed interest rate by 10 basis points to 4.59% (5.12% comparison rate).

Your Mortgage’s home loan calculator shows the reduction will save first home owners about $16 a month for a loan of $300,000, on a loan term of 20 years, compared to the previous rate.

The rate applies for a home loan between $100,000 - $750,000.