Online lender, Tic:Toc has announced that it will cut rates on their variable and fixed rate home loan, which according to them, are the lowest rates in the market.
The decision came in response to the Reserve Bank’s decision to once again hold rates at the current record low of 1.50%.
The previous variable rate of 3.57% has now dropped by 10 basis points to 3.47% (3.48% comparison rate*) and is only available to new customers.
However, current Tic:Toc customers will also benefit from a rate cut, as the lender has slashed rates on their 1 year fixed home loan by 20 basis points, from 3.59% to 3.39% (3.56% comparison rate*)
But before existing customers jump to the chance to fix their home loan with Tic:Toc’s new fixed rate, Mozo’s Product Data Manager has encouraged customers to think wisely before making a decision.
“Many lenders are expecting the RBA to cut rates in the following months, and if that happens variable rates could fall quite a lot over coming months,” he said.
“The RBA could cut the cash rate as early as next month, and that could very well be followed by another cut before the end of this year. While it can be tempting to lock in your home loan with an ultra cheap rate now, before the next 12 months is up we could be seeing variable rates starting with a ‘2’.”
In addition to the super low rates, customers looking to refinance their home loan will also receive $1,000 cashback upon settlement which Baum said is to ease the financial burden of switching home loans.
“We know the cost of refinancing - such as break fees from the existing lender - can be a barrier to switch to a lower cost home loan. That’s why Tic:Toc is also trialling an offer of $1,000 to customers upon settlement, to cover these expenses.”
The award winning variable home loan
The new reduced rate might start to make the Tic:Toc Variable Home Loan look like a winner, which only makes sense given that the online lender was recently crowned Online Lender of the Year in the 2019 Mozo Experts Choice Awards.
The loan itself received three Mozo Experts Choice Awards in the Low Cost Home Loan, Offset Home Loan and Investor Home Loan categories.