Overnight, major bank NAB launched a $2,000 cashback offer for refinancers across a range of its home loan products. For customers looking to refinance before 31 January 2021, the cashback is available on the following loans:
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Easy Street, a division of Community First Union, introduced a contender for best value home loan this week. Its Standard Variable Home Loan now offers rates as low as 1.95% p.a. (1.99% p.a. comparison rate*) on loans of at least $750,000. The loan doesn’t charge any monthly or annual fees and comes with a number of features, such as an offset account, fee-free redraw facility and the ability to make free extra repayments. There is, however, an application fee of $500.John Tancevski, chief executive of Community First Credit Union said it was the lowest home loan rate they have ever offered and “is evidence that it is possible to offer an exceptionally low rate without scrimping on loan features.”
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While the rug hasn’t been pulled out from underneath the property market just yet, prices continue their gradual descent, with the CoreLogic home value index recording a decrease of 0.4% in August. This marks the fourth consecutive month property prices have fallen, however the rate of decline has slowed compared to previous months.CoreLogic head of research, Tim Lawless said Melbourne continues to lead the decline, with home values falling by 1.2% in August and 4.6% since the onset of the pandemic.“It’s not surprising to see Melbourne as the weakest housing market considering the extent of the virus outbreak, and subsequent restrictions, which have weakened the economic performance of Victoria,” he said.Among capital cities, only Darwin (+1%), Canberra (+0.5) and Hobart (+0.1) recorded increases in dwelling values. Elsewhere, property prices held steady or decreased only slightly, as in Sydney and Brisbane, where prices fell by 0.5% and 0.1%, respectively. Lawless expects diverging outcomes across markets as states experience varying degrees of success in containing the virus. Reliance on overseas migration as a source of housing demand will also result in uneven impacts.“The performance of housing markets are intrinsically linked with the extent of social distancing policies and border closures which also have a direct effect on labour market conditions and sentiment,” Lawless said.
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Competition for borrowers continues to remain fierce heading into spring, with lenders cutting their sharpest variable and fixed mortgage rates by even greater margins and offering up more incentives for refinancers to switch loans.
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ME Bank has joined the swelling ranks of lenders making cuts to short-term fixed home loan rates by reducing a number of offers between 20 to 40 basis points.
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Five Reserve Bank rate cuts in the past 14 months have accelerated home loan rate cuts across the board, yet only a fraction of Australian households have taken up the opportunity to refinance their mortgage.
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Australian neobank 86 400 has announced it will be offering tiered variable rates for home loan customers, giving those with a lower LVR (Loan to Value Ratio) the chance to access cheaper rates.The new pricing system means borrowers with a deposit of at least 40% of a property’s value can pay as little as 2.59% p.a. (2.87% p.a. comparison rate*). According to 86 400’s lending product lead, Melissa Christy, this will go a long way towards freeing up customers’ finances."We built 86 400 to help Australians take control of their money. By reducing the variable loan rates for customers with more equity in their property, we are helping our customers do more with their money,” she said.The new rates came into effect 20 August 2020, and will be available to all customers, including existing ones. The tiers and accompanying rates for owner occupiers making principal and interest repayments are listed below:• LVR ≤ 80%: 2.74% p.a. (3.02% p.a. comparison rate*)• LVR ≤ 70%: 2.64% p.a. (2.92% p.a. comparison rate*)• LVR ≤ 60%: 2.59% p.a. (2.87% p.a. comparison rate*)Investors will also be able to take advantage of the new pricing system, with rates as low as 2.89% p.a. (3.17% p.a. comparison rate*) available. Below are the price bands for investors making principal and interest repayments:• LVR ≤ 80%: 3.09% p.a. (3.36% p.a. comparison rate*)• LVR ≤ 70%: 2.99% p.a. (3.27% p.a. comparison rate*)• LVR ≤ 60%: 2.89% p.a. (3.17% p.a. comparison rate*)While rate discounts by LVR are nothing new, they’ve become more popular in recent months as lenders look to peel away low-risk refinancers from competitors. A lower LVR means borrowers are less likely to enter negative equity territory and be forced to sell during a downturn. 86 400 is also offering $2,000 cashback on settlement for eligible borrowers. The offer is available on applications of $250,000 or more, so long as they are received by 31 August 2020 and settled by 31 October 2020.For more information, read our review for the 86 400 Own Home Loan. And if you’re wondering how the rates on offer compare to others on the market, browse our home loan comparison page, where you’ll be able to filter your search by rate and type.
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Fifty-two per cent of first home buyers have delayed their plans to purchase property due to the COVID-19 pandemic, according to new findings from Gateway Bank. Meanwhile, 16% have put their plans on hold indefinitely.“As more people are being forced to spend their deposit savings on basic living expenses, the prospect of buying a property is now even more elusive,” said Gateway Bank chief executive officer, Lexi Airey. In a survey of 700 Australians hoping to buy their first home, Gateway Bank found that half have been forced to dip into their deposit savings. Of this group, 45% did so to cover day-to-day expenses, while 17% used their savings to help a family member experiencing financial stress.Perhaps most shocking, 16% of potential first home buyers admitted to draining most of their deposit in the months since the pandemic struck.For many, recovering lost savings won't come easy, especially at a time when job insecurity is on the rise and ties to employment are only being preserved through government largesse.In fact, according to the research, 56% of first home buyers believe it will take them an additional one to three years to save up a deposit, while 25% expect to be saving for at least another three years.
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If you haven’t noticed already, fixed home loans are well and truly back in vogue in 2020, largely replacing the spot previously occupied by variable home loans in offering the sharpest rates on the market.
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Everybody loves a little extra money in their pockets, and cashback offers have been flying through the door with providers looking for enticing ways to reward new customers during the pandemic down-turn. Many of them are offering generous rewards for things like switching your home loan, opening a new bank account, grabbing a new credit card and even taking out a new car insurance policy. With cashback offers reaching the thousands, now might be time to consider finding a bargain and being rewarded for doing so. To help you cash-in the bonuses, check out our round-up for this month and see where you could score a little spare change.
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