MOVE Bank cuts home loan rates, but are Aussies still keen on switching?

Whether you’re thinking of adding another investment property  to your portfolio or are looking to snatch up your first home this year, the latest decision from MOVE Bank may be welcome news for you. 

Effective today, the lender has cut its three-year fixed rate Ultra Low Lockit loan by 24 basis points, bringing the rate down to a competitive 2.74% (3.82% comparison rate*) which sits well below the average three-year fixed rate in the Mozo rate of 3.20%^. 

But that wasn’t all. MOVE Bank also unveiled some new rates for investors, reducing its Straightforward Investment Loan by 30 basis points, with the new rate now sitting at just 3.09% (3.12% comparison rate*).  

And if you're a new customer and submit your application before 29 May 2020, MOVE Bank will give you $1,000 cashback, which will be deposited into your MOVE Bank Everyday Saver or Express Saver account!  

The lender has also added an interest-only option to their Straightforward Investment Loan, with the rate sitting at 3.29% (3.32% comparison rate*), however this loan is only available to investors borrowing below 75% of the property’s value. 

The news comes just days after online lender Well Home Loans announced it would be making adjustments to its fixed and variable rates, which saw them take out the title of lowest three-year fixed rate in the Mozo database at a jaw-dropping 2.68% (2.74% comparison rate*).  

Refinance activity drops, says Australian Bureau of Statistics (ABS) 

Despite the ongoing rate war between lenders, it seems that not all Aussies are jumping at the chance to score a better deal. 

Recent figures from the Australian Bureau of Statistics (ABS) reveal that the number of Aussies refinancing their home loans has fallen by 2% from $9.83 billion to $9.63 billion in November (seasonally adjusted). 

Owner-occupiers accounted for the majority of the decline with a reported 2.6% decline in switching, while investors only experienced a 1.2% decline. 

But according to Mozo’s home loan expert, Steve Jovcevski, this refinance ‘slump’ may only be temporary. 

“With the back-to-back rate cuts in June and July, I suspect that home owners aren’t feeling as motivated to switch (in November), as they would have already received a cut from their current lender,” he said. 

“Additionally, lenders may also be pulling out all stops to retain customers, since it’s cheaper to keep a customer than it is to gain a new one - they may even be matching the rates of other lenders their customers are considering.” 

“However, with another potential cut in February, I expect that this slump will stop and refinancing will resume again.” 

So if you’d like to find out if you could be on a better home loan deal, make your next stop our home loan refinance comparison tool

Compare refinance home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.24% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Apply Online & Refinance before 29 October 2021 for the chance to WIN your home loan interest free - Save up to $1.1 million. T&Cs apply.

    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Go to site
    Details

^As at 17 January, 2020

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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