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.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans using the filters below.
Last updated 13 July 2024 Important disclosures and comparison rate warning*
  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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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. 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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