A record 31 lenders are set to offer mortgages rate below 2 per cent according to analysis by comparison site RateCity.com.au.

"At the beginning of this year, no one would have predicted there would be more than 30 lenders with rates under 2 per cent," said RateCity research director Sally Tindall.

"It's no longer just online lenders with low rates. The bigger banks are now starting to steal their thunder offering up fixed rates under 2 per cent."

RateCity said 17 of the 31 lenders had advertised rates under 2 per cent, while a further 14 lenders will make their new rates available in the coming days.

CBA, Westpac and NAB now have fixed rates under 2 per cent.

The cheapest fixed rate is 2-years-fixed at an advertised 1.88 per cent, offered by HSBC.

Only five lenders have passed on variable rate cuts to their existing customers, with homeloans.com.au cutting its rate as low as 2.14 per cent.

The cheapest advertised variable rate on the market is 1.77 per cent offered by Reduced Home Loans.

Bank of Queensland has reduced its fixed interest rate but left variable rates on hold.

From Friday, the lender will offer 1.99 per cent, per annum on four-year fixed rates for new owner occupier principal and interest borrowers.

The Bank's Chief Product Officer, Mr Chris Screen, said:

"As the Australian economy recovers, BOQ is here to help our customers re-focus on their goals," said Bank of Queensland chief product officer Chris Screen.

"Whether they're looking to buy their first home, buy their next home or grow their business, we've got some great solutions available and a dedicated team of bankers ready to lend a hand."

The rate cut comes after the RBA lowered the official cash rate to 0.1 per cent last week.

"For the average borrower, refinancing to a low fixed rate could save them thousands of dollars a year but locking in is not for everyone.

"Don't rush into fixing. Make sure you're happy with the rate but also with the terms and conditions that come with a fixed rate.

"Split loans can be a good option for people looking to take advantage of the record low fixed rates but still want to keep their offset or make extra repayments," she said.

Lenders with rates under 2 per cent

CBA 1.99% 4-yr fixed

Westpac 1.89% 4-yr fixed

NAB 1.98% 4-yr fixed

AMP Bank 1.97% 3-yr fixed

Bank First 1.99% 3-yr fixed

Bank of Melbourne 1.89% 4-yr fixed

BankSA 1.99% 4-yr fixed

Bankwest 1.99% 4-yr fixed

BOQ 1.99% 4-yr fixed

Citi 1.99% 2-yr fixed

CUA 1.97% 3-yr fixed

Freedom Lend 1.97% variable

Greater Bank 1.99% 1-yr fixed

Homestar Finance 1.79% variable

HSBC 1.88% 2-yr fixed

Hume Bank 1.99% 3-yr fixed (construction)

Illawarra Credit Union 1.99% 2-yr fixed

IMB Bank 1.97% 3-yr fixed

ING 1.99% 4-yr fixed

l oans.com.au 1.99% 3-yr fixed

Mortgage House 1.94% variable

Newcastle Permanent 1.98% 1-yr fixed

P&N Bank 1.99% 1-yr fixed

Pacific Mortgage Group 1.89% variable

People's Choice Credit Union 1.99% 4-yr fixed

R ACQ Bank 1.99% 3-yr fixed

RAMS 1.99% 4-yr fixed

Reduce Home Loans 1.77% variable

St.George Bank 1.89% 4-yr fixed

Suncorp Bank 1.89% 2-yr fixed

Ubank 1.95% 3-yr fixed

Source: RateCity.com.au

Some rates will become available later this month. Home loans above are available Australia-wide. LVR restrictions may apply.

Originally published as FULL LIST: Every bank with mortgage rates below 2 per cent