Tic:Toc pounces on RBA cut, slashes variable and fixed rate home loans to new lows

Tom Watson

08 Oct 2019

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Tic:Toc has become the latest lender to drop interest rates following last Tuesday’s Reserve Bank official cash rate cut, with the online lender now offering some of the most competitive home loan rates around. 

The changes apply to a number of variable and fixed rate home loans, and come into effect immediately. Some of the highlights include:  

• A 0.15% cut to the Variable Home Loan rate. Owner occupiers making principal and interest repayments will now be able to grab a rate of 2.84% (2.85% comparison rate*).

• A 0.15% cut to select Fixed Home Loan rates. Owner occupiers making principal and interest repayments will be able to access rates of 2.84% (2.92% comparison rate*) for 3 year fixed terms.

According Mozo’s home loan repayments calculator, the 0.15% cut would reduce repayments on a variable rate Tic:Toc home loan of $400,000 (for a borrower making principal and interest repayments over 25 years) by $31 a month, or $9,312 over the life of the loan. 

Today's cuts also mean that Tic:Toc now sits in illustrious company. 

That’s because, with a variable rate of 2.84% (2.85% comparison rate*), Tic:Toc’s Variable Home Loan is now among the lowest rates in the Mozo database and well below the current average variable rate in the Mozo database of 3.72%^.

So too is the Tic:Toc Fixed Rate. It’s rates of 2.84% (2.94% comparison rate*) for a 1 year fixed term, 2.84% (2.93% comparison rate*) for a 2 year fixed term and 2.84% (2.92% comparison rate*) for a 3 year fixed term all rank among the lowest in the Mozo database. 

Ready to find out more? Here’s a snapshot of Tic:Toc’s variable and fixed rate loan offers.

Promoted

Tic:Toc Variable Home Loan
  • Low variable rate of 2.84% (2.85% comparison rate*)

  • Offset account available from $10 per month

  • Free extra repayments and redraw facility

The verdict

Online lender Tic:Toc first made the news for the speed of its home loan approvals (as little as 22 minutes), but it’s latest rate cuts are sure to create headlines of their own. That’s because Tic:Toc’s Variable Home Loan now comes with an interest rate of just 2.84% (2.85% comparison rate*) on top of zero upfront or ongoing fees. The low rate loan even comes with handy features such as an optional offset account (for $10 a month), as well as the ability for borrowers to make extra repayments towards their balance for free. Just keep in mind that there is a $325 discharge fee at the end of the loan.

Promoted

Tic:Toc Fixed Home Loan
  • 2.84% fixed interest rate for 1, 2, and 3 year terms (up to 2.94% comparison rate*)

  • $0 application and ongoing fees

  • Optional offset account

The verdict

Love the idea of repayment certainty? If locking in a low fixed home loan rate is high on your priority list then you might just fall head over heels for Tic:Toc’s Fixed Home Loan. Tic:Toc’s currently offering fixed interest rates as low as 2.84% for 1-3 year terms (up to 2.94% comparison rate*) and you won’t even need to worry about budgeting for any pesky upfront or ongoing fees. The only fees you’ll need to consider are the $325 discharge fee at the end of the loan and the optional $10/month fee you’ll need to pay if you’re interested in adding an offset account.

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

Want to compare Tic:Toc’s offers with some of the other standout deals around? Stop by the Mozo home loan comparison hub to compare variable and fixed rate offers from over 80 different lenders.

^Accurate as of 8 October, 2019. This average rate is an estimated aggregate based on lenders in the Mozo database that have already cut or have announced cuts and does not include lenders that have yet to announce changes.

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