Loans.com.au slashes home loan rates for owner-occupiers, investors
Online lender, loans.com.au has today slashed rates for both owner-occupiers and investors on certain home loans, and is now offering some of the lowest mortgage rates in the market.
One of the changes was to cut the Essentials Variable 80 rate for owner-occupiers looking to make principal and interest repayments by 12 basis points, bringing it to a red hot 3.52% (3.54% comparison rate) - the lowest rate for a loan of its kind in the Mozo database.
UPDATE 15/2/18: Reduce Home Loans today dropped their Rate Lovers Variable Home Loan rate to 3.49% (3.57% comparison rate), lowest in the Mozo database.
“Competition is heating up between lenders ahead of the Autumn property season, which means borrowers have the chance to nab a really excellent deal,” said Mozo Director Kirsty Lamont.
The rate on loans.com.au’s Offset Variable 80 for owner-occupiers making principal and interest repayments was also slashed by 12 basis points, bringing it down to a competitive 3.60% (3.62% comparison rate).
“The beauty of having an offset account attached to your home loan is that by parking your savings in there, you’re reducing the amount of interest you pay on your loan without lifting finger,” said Lamont.
And investors weren’t left out either. Those looking to make principal and interest repayments saw rate rises of 10 basis points on both the Essentials Variable 80 and Offset Variable 80, to 4.19% (4.22% comparison rate) and 4.27% (4.29% comparison rate) respectively.
At the same time, investment loans with interest-only repayments saw big cuts of 20 basis points, bringing them equal to that of investment loans with principal and interest repayments.
More than a third of lenders in Mozo’s database have made a variable rate cut since the start of October, with 70 lenders now offering a variable rate below 4.00% for owner-occupiers making principal and interest repayments.
Lamont urged borrowers to be aware of what offers are available and spend some time comparing their options before signing onto a home loan.
“There are heaps of really competitive rates around at the moment as lenders try to tempt Aussie home buyers. So it only makes sense to take advantage of that and snag yourself the best possible deal,” said Lamont.
So if you’re looking to make a property purchase this year, head over to our home loan comparison table to check out some low rate options.