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
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.
Smart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 3 years2.43% p.a.Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
Basic Home Loan
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% 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.
UHomeLoan
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 30 September 2022. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.
Celebrate Variable Home Loan
Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Fixed Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.89% p.a.
fixed 2 years2.15% p.a.Award-winning low rate home loan that could save you thousands. No application or ongoing fees, fee-free redraws, unlimited additional repayments and an optional offset account for $10/month. Minimum 10% deposit. Winner of Mozo’s Experts Choice Award for Online Home Lender of the Year 2021.^
Fixed Home Loan
Award-winning low rate home loan that could save you thousands. No application or ongoing fees, fee-free redraws, unlimited additional repayments and an optional offset account for $10/month. Minimum 10% deposit. Winner of Mozo’s Experts Choice Award for Online Home Lender of the Year 2021.^
- Ongoing fees
- $0.00
- Discharge Fee
- $325.00
- Extra repayments
- yes - free, up to $20,000 p.a.
- Redraw facility
- yes - free
- Offset account
- Optional - $10 per month
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Fixed Home Loan
^As at 17 January, 2020
^See information about the Mozo Experts Choice Home Loans Awards
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