Tic:Toc, Macquarie slash variable home loan rates for low deposit customers
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.
Fixed home loan comparisons on Mozo
Promoted
-
Fixed Home Loan
- Owner Occupier
- Principal and Interest
- Interest rate
-
5.84
%
p.a.
Fixed 1 years
- Comparison rate
-
5.93
%
p.a.
- Initial monthly repayment
-
$2,852
Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
- Interest rate
-
5.54
%
p.a.
Fixed 2 years
- Comparison rate
-
5.93
%
p.a.
- Upfront fees
-
$495
- Ongoing fees
-
$0.00
- Discharge fee
-
$325.00
- Extra repayments
-
- Redraw facility
-
yes - free
- Offset account
-
yes- optional with $10/month
- Maximum loan to value ratio
- 90.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $3,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- -
- Special offers
- -
Read our Mozo Review to learn more about this NRMA Insurance Fixed Home Loan
Go to site
-
Fixed Home Loan
- Owner Occupier
- Principal and Interest
- Interest rate
-
5.84
%
p.a.
Fixed 1 years
- Comparison rate
-
5.93
%
p.a.
- Initial monthly repayment
-
$2,852
Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
- Interest rate
-
5.54
%
p.a.
Fixed 2 years
- Comparison rate
-
5.93
%
p.a.
- Upfront fees
-
$495
- Ongoing fees
-
$0.00
- Discharge fee
-
$325.00
- Extra repayments
-
- Redraw facility
-
yes - free
- Offset account
-
yes- optional with $10/month
- Maximum loan to value ratio
- 90.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $3,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- -
- Special offers
- -
Read our Mozo Review to learn more about this NRMA Insurance Fixed Home Loan
Go to site -
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
5.99
%
p.a.
Fixed 3 years
- Comparison rate
-
6.89
%
p.a.
- Initial monthly repayment
-
$2,995
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.
- Interest rate
-
5.99
%
p.a.
Fixed 3 years
- Comparison rate
-
6.89
%
p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge fee
-
$160.00
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read our Mozo Review to learn more about this ANZ Fixed Rate
Your selected home loans
* 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.
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