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 - last updated January 18, 2021
Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
Sorted by:
Mozo Order
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% 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.
Go to siteCompare1.95% p.a.
fixed 3 years2.27% p.a.
UHomeLoan
Owner Occupier, Principal & Interest
1.95% p.a.
fixed 3 years2.27% p.a.
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
Go to siteCompare2.19% p.a. variable
2.19% p.a.
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
2.19% p.a. variable
2.19% p.a.
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
Go to siteCompare2.04% p.a.
fixed 2 years2.79% p.a.
Special Offer Reward Me Fixed Rate Home Loan
Owner Occupier, LVR <80%, 300k+
2.04% p.a.
fixed 2 years2.79% p.a.
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
Go to siteCompare2.19% p.a.
fixed 3 years2.53% p.a.
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
2.19% p.a.
fixed 3 years2.53% p.a.
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
Go to siteCompare
^As at 17 January, 2020
^See information about the Mozo Experts Choice Home Loans Awards
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