Home loan lenders still reducing interest rates despite stable RBA cash rate
Article by Roisin Kelly-Goldsmith
Home loan interest rates went rogue last month, when 13 lenders cut variable rates on their mortgages, despite the RBA cash rate remaining stable since August.
According to Mozo’s latest Banking Roundup, the number of lenders who reduced home loan rates far outweighed those who didn’t.
While Bank Australia andLoans.com.au cut variable rate mortgages by 14 and 12 basis points respectively, the real highlight for borrowers came from AMP, who introduced a rate discount of 20 basis points for those borrowing over $500k with its “Essentials Home Loan”.
Despite the rate cut flurry that took place in October, Mozo data found that the best rates have remained unchanged.
Here are the top variable rate loans, according to our database:
|Product||Variable rate||Comparison rate|
|Reduce Home LoansRate Buster Variable home loan|
|Homestar Owner Occupier loan |
Loans.com.au Essentials Variable home loan
Mortgage House Special Variable Home Loan
FreedomLend Variable Home Loan
Plus, the top fixed rate loans:
- 2 years – 3.59% from QT Mutual Bank (comparison rate 4.74%)
- 4 years – 3.74% from Greater Bank (comparison rate 4.34%)
- 5 years – 3.74% from Greater Bank (comparison rate 4.32%)
“If last month has shown us anything in the home loan market, it’s that Aussies have been given more choice when it comes to nabbing low interest rates,” said Mozo Director, Kirsty Lamont.
“In fact, some of the best deals in the market sit below the 3.5% mark. So for homeowners looking to free up some extra cash before the Christmas season hits, now could be an ideal time to refinance to a better deal.”
For instance, our research shows that a customer with a $400k mortgage on the average loan interest rate of 4.37%, who ditches it for the lowest rate loan of 3.35%, would pocket $2,681 annually or around $225 a month (on a 25 year loan term).
If you want to break up with your home loan lender and refinance, we know just the way to do it. Save time and money by comparing home loans at our data driven hub now!