Tic:Toc joins the fight for lowest variable mortgage rate with 20bp cut

By Tom Watson · Last updated Tuesday, 27 October 2020 · 2 min read

Fact Checked

Online lender Tic:Toc has reduced its Variable Home Loan rate by 20 basis points this morning, placing the offer among the lowest variable home loan rates currently on the market.

Today’s change means the interest rate on the Variable Home Loan has dropped from what was already a very competitive 2.39% (2.40% comparison rate*) to just 2.19% (2.20% comparison rate*).

The new rate is available to owner-occupier borrowers on loans between $50,000 and $2,000,000, and it comes with no upfront or ongoing fees plus an optional offset account (which is available for $10 per month).

This is now the third time Tic:Toc has reduced the rate on its Variable Home Loan since February and they join a steady stream of lenders who have also lowered variable rates in recent weeks.

As the table below shows, the Tic:Toc’s loan now sits just behind Well Home Loans’s Well Balanced offer as having the second lowest variable rate in our database.

Lowest variable rate home loans - Mozo Database (October 19, 2020)^

Rate	Lender	Loan
2.17% (2.20% comparison rate*)	Well Home Loans	Well Balanced
2.19% (2.20% comparison rate*)	Tic:Toc	Variable Home Loan
2.19% (2.26% comparison rate*)	Reduce Home Loans	Super Saver Variable
2.19% (2.59% comparison rate*)	firstmac	Basic 80
2.29% (2.32% comparison rate*)	Homestar	Star Essentials

To put it further into perspective, Tic:Toc’s new rate sits a considerable 115 basis points below the current average variable rate of 3.34%.

And more importantly for borrowers, on a $400,000 loan being paid off 25 years, the Tic:Toc rate would result in a borrower paying $70,702 less in total interest over the life of the loan compared to the average variable rate.

Interested in learning more? Keep reading for mini reviews of 2020 Mozo Expert Choice Award Online Lender of the Year Tic:Toc’s variable and fixed rate offers.

Tic:Toc Home Loans

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Important disclosures and comparison rate warning*

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Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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.

Variable Home Loan

2.19% variable rate (2.20% comparison rate*)
Optional offset account ($10/month)
Zero upfront or ongoing fees

Find out more

That rate is no mistake, online lender Tic:Toc really are offering one of the lowest variable rates around of just 2.19% (2.20% comparison rate*) for eligible owner-occupiers with the Variable Home Loan. To add to that, the loan doesn’t come with any upfront or ongoing fees, but borrowers will be able to make extra repayments (for free), make use of an online redraw facility and even open an offset account (for an extra $10/month).

Fixed Home Loan

2-year fixed rate as low as 2.09% (2.35% comparison rate*)
No upfront or ongoing survive fees
Offset account available ($10/month extra)

Find out more

Like the idea of locking in some rate certainty? Tic:Toc’s Fixed Home Loan might be just the ticket with fixed terms of 1-5 years available and rates as low as 2.09% (2.35% comparison*). Tic:Toc provides features such as extra repayments (free up to $20k), free online redraws and even an offset account ($10/month). There are also no upfront or ongoing service fees to worry about and while some lenders sting customers with high revert rates, the Fixed Home Loan revert rate is a competitive 2.39%.

^These variable rates are the lowest currently available in the Mozo database for an owner-occupier borrower making principal and interest repayments on a $400,000 loan with an LVR of 80%.

^* 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. You can change the loan amount and term in the input boxes at the top of this table. 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

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Tom Watson

Finance journalist

Tom Watson is a financial journalist at Mozo and co-host of the Finance Burrito podcast, specialising in fintech, property and business banking. Whether it’s reporting on banking trends or uncovering the latest product innovations, Tom’s mission is to keep our readers up to date with breaking Australian financial news. His work is often sourced in the media and across social media channels. Tom has a degree in Journalism from the University of Technology, Sydney. He is also ASIC RG146 (Tier 2) certified for general advice.