Home loan lenders cut mortgage rates as spring heats up
Article by Ben Tosi
A host of lenders have cut the headline home loan rates of fixed and variable loans for owner occupiers ahead of what is expected to be a busy spring property season, according to Mozo’s Banking Roundup for August.
For customers looking for a low variable rate, the biggest changes over August came from Greater Bank which cut its Great Rate Home Loan by 15 basis points to 3.84%, Bank of Queensland which cut the rate on its Economy Home Loan by 10 basis points to 3.79% and Beyond Bank which reduced the rate on its special offer from 4.09% To 3.99%.
The market was also refreshed by HSBC which dropped its variable rate to 3.65% on its Home Value Loan, today.
Despite wholesale cuts to the variable rate market, Reduce Home Loans is still offering the most competitive rate on the market with its Rate Buster Variable at 3.44% only bettered by My Credit Union’s one year introductory rate of 3.39%.
For homeowners who prefer to fix their home loans, August brought a raft of changes to fixed rates as well.
Fixed rate cuts outnumbered increases for the first time in almost a year with Newcastle Permanent slashing home loan rates by as much as 30 basis points, now offering the best fixed rate of any two year term at 3.64%.
“These cuts are great news for home buyers. With banks looking to compete more and more for owner occupier loans, consumers have the power to choose a competitive loan whether it be at fixed or variable rates,” said Mozo Product Data Manager, Peter Marshall.
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While most experts are not expecting a rate rise at the RBA’s meeting next Tuesday, fixed rates are still on par with variable rates so it is a good time for owner occupiers to negotiate a low fixed rate on their home loan.
Check out Mozo’s Variable and Fixed Rate Comparison tables to find the best value home loan for you and head to our Home loan Guides hub for tips and tricks when it comes to organising your home loan.