Tic:Toc, Macquarie slash variable home loan rates for low deposit customers

Cutting hedges

Just when you thought home loan rates wouldn’t tumble any further, online lender Tic:Toc this week has reduced its variable offer to a new rock bottom for home buyers with smaller deposits.

The Tic:Toc Variable Home Loan fell by 15 basis points to just 2.04% (2.05% comparison rate*) for owner occupiers making principal and interest repayments with loan-to-value ratios (LVRs) of up to 90%.

It’s now the most competitive rate in the Mozo database at this LVR tier, or the third best among <80% LVR loans. 

Investors making P&I repayments weren’t left out either, with Tic:Toc’s variable rate for this borrower group dropping by 14 basis points to 2.19% (2.20% comparison rate*) for <90% LVRs.

This again places Tic:Toc ahead of competitors, and it has now become the new variable rate leader in the Mozo database for investors too.

But Tic:Toc wasn’t the only lender to announce variable rate cuts this week. 

Macquarie Bank
also stepped in today with 15 basis point reductions across all of its variable home loans for owner occupiers. Rates now start as low as 2.34% (2.34% comparison rate*) with the Macquarie Basic Home Loan for owner occupiers on P&I repayments with <60% LVRs. Meanwhile, for higher LVRs of up to 90%, rates have dropped to 2.89% (2.89% comparison rate*)

Or if you’re looking for a loan with more bells and whistles, the Macquarie Offset Home Loan (Package) also saw variable rates for owner occupiers on P&I decline to 2.34% (2.62% comparison rate*) for <60% LVRs and 2.89% (3.16% comparison rate*) for <90% LVRs.

As a point of comparison, all rates mentioned above sit below the average variable rate in the Mozo database of 3.27%. 

These moves come just days after online lender Athena dropped its variable home loan to an ultra-low 1.99% (1.99% comparison rate*) for borrowers with <60% LVR. 

Fixed rates continue to trend upwards

However, when it comes to longer-term fixed home loans, both Tic:Toc and Macquarie have done the reverse and raised their rates instead. 

Tic:Toc this week bumped up its four and five year fixed rates for owner occupiers on P&I repayments by 10 basis points. Meanwhile Macquarie made bigger increases of up to 30 basis points for a range of its four and five year offers.

They’re not alone in making such moves. In fact, there has been an emerging trend of lenders hiking up their fixed rates over the past few months. At least 25 out of 99 lenders in our database have already lifted their longer term offers since January, according to Mozo’s recent number crunch

“The fact that fixed rates are going up while variable rates are being pushed down even further is a good sign that lenders are now trying to hook people in with variable rates,” Mozo’s banking expert, Peter Marshall said.

“It’s a good tactic, as staying competitive on the variable rates front helps lenders get as much new business through the door as they possibly can while the markets are still running hot. But at the same time, lenders have the flexibility to adjust their variable rates for all of their customers at any time.” 

Hoping to lock in a low fixed rate before any further hikes? Scroll down below to get started today! 

Or if you’re interested in browsing even more of the latest deals, you can visit our dedicated fixed rate or variable rate home loan comparison hubs.

Compare fixed rate home loans - last updated 25 January 2022

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  • UHomeLoan
    interest rate
    comparison rate
    Initial monthly repayment
    1.79% p.a.
    fixed 1 year
    2.18% p.a.

    Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • Well Balanced Fixed
    interest rate
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    Initial monthly repayment
    2.27% p.a.
    fixed 2 years
    1.95% p.a.

    Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.

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  • Own Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    fixed 2 years
    2.59% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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  • Special Fixed Rate Home Loan
    interest rate
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    Initial monthly repayment
    2.54% p.a.
    fixed 2 years
    3.78% p.a.

    Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.

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    Discount Fixed Rate
    interest rate
    comparison rate
    Initial monthly repayment
    2.59% p.a.
    fixed 2 years
    3.17% p.a.

    Lock in a competitive rate for 2 years. Only 20% deposit required. Flexible repayment options and make up to $5,000 in additional repayments annually. Refinance to BOQ by 31 January 2022 and get $3,000 cashback (T&Cs apply).

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* 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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