Tic:Toc pushes variable home loan rates to new bottom

By Katherine O'Chee · · 2 min read
Fact Checked
Woman diving illustrating home loan rates falling

Online lender Tic:Toc has surged ahead of competitors to offer the lowest variable home loan rate in the Mozo database after a 15 basis point cut this morning. 

The Tic:Toc Variable Home Loan now sits at a new rock bottom of 1.89% (1.90% comparison rate*) for owner occupiers making principal and interest repayments with a maximum loan-to-value ratio (LVR) of 80%. 

Given that its previous rate was 2.04% (2.05% comparison rate*), Tic:Toc’s latest move also means it has now joined a very small pool of lenders offering variable rates that start with ‘1’. 

Tic:Toc’s rate is also available to borrowers with a LVR of up to 90%, and the loan itself comes with an optional offset account (at $10 per month). 

So just how good is Tic:Toc’s new rate? For comparison, it sits 5bp below its closest contender - 1.94% (1.98% comparison rate*) offered by Mortgage House on its Get More, Save More Variable Home Loan - and it’s a massive 133 basis points below the variable rate average in our database. 

So if you’re borrowing $400,000 over 30 years, Tic:Toc’s rate as opposed to the average could save you $99,963 in interest over the life of your home loan. That translates to about $3,332 saved per year. 

Tic:Toc’s decision comes at a time when variable home loan rates have continued to trend downwards. In fact, the variable rate average for owner occupiers (3.22%) is at the lowest point it’s been since Mozo began tracking in 2015. 

Thinking of securing a variable home loan deal while rates are still at a record low? Check out some great offers in the table below, or compare home loans from even more lenders over at our home loans comparison hub.