This week in banking - Tic:Toc slashes rates to a market low

In this week's banking roundup, we look at the latest batch of home loan cuts - which have kept up pace despite the RBA’s decision to keep the cash rate unchanged - plus more news from the world of banking and finance.

Mozo’s Comfort Spending Report

This week, we released the findings from our comfort spending report, and it turns out that Aussies are spending a mindblowing $25.5 billion a year to pick themselves up when feeling down.

According to the report, boredom was the biggest driver of comfort spending, followed by stress/anxiety and unhappiness. As for the most popular purchases, it shouldn’t be a surprise that clothing tops the list, with takeaway food and chocolate coming in second and third.

Rate cuts put Tic:Toc home loans among cheapest

Home loan rates continued to drop this week, with Tic:Toc headlining the latest round of cuts. The online lender slashed its variable home loan by 0.10%, putting it at a market low of 3.47% (3.48% comparison rate*).

While this only applies to new customers, existing customers will be able to benefit from cuts that were also made to fixed rates. If you lock in a 1 year term, you’ll be treated to a seriously impressive 3.39% fixed rate (3.56% comparison rate*).

ScoMo’s first home buyers scheme

With the federal election just a few days away, Scott Morrison has unveiled a new scheme to help Aussie first home buyers get their foot on the property ladder.

Under this initiative, the government will guarantee the difference in cost required to meet the standard 20% deposit threshold, so long as borrowers have saved at least 5%. This means borrowers won’t have to spring for Lenders Mortgage Insurance, potentially saving them thousands. 

G&C Mutual cuts credit card purchase rates

If you’ve been on the lookout for a new piece of plastic, recent moves by G&C Mutual Bank should get your attention. It just cut the purchase rate on its Low Rate Visa Credit Card by a staggering 2%, making the new rate of 7.49% the lowest in our database.

This follows news that Westpac and St George Group would be hiking purchase rates across a range of their credit cards. Hopefully this won’t become a trend and we’ll see more providers taking cues from G&C Mutual instead.

ME Bank drops rates for owner occupiers and investors

Along with Tic:Toc, we also saw cuts from ME Bank, which reduced both fixed and variable rates across a range of both packaged and unpackaged home loans.

Owner occupiers who sign up for the Flexible Home Loan (Member Package) will be able to take advantage of a low 3.58% p.a. fixed rate (4.26% comparison rate*).

But is now a good time to lock in a fixed rate? Mozo Product Data Manager Peter Marshall says that with potential cash rate cuts just around the corner, the price environment stands to drop much further.

“If the RBA cuts the cash rate by 50bp over coming months we could be seeing variable rates that start with a '2', so it might be worth sticking with a variable rate for now.”

If you want to take a look at some quality variable home loans, check out some of the options below, or head to our variable home loan comparison page for a more comprehensive overview.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    1.99% p.a.variable for 12 months and then 2.48% p.a.
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Awards for 2021.

    Go to site
    Details
  • placeholder
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.34% p.a.
    2.34% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Go to site
    Details
  • placeholder
    Basic Home Loan

    Owner Occupier, LVR<80%, Principal & Interest

    variable rate
    comparison rate
    2.64% p.a.
    2.64% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.19% p.a.
    2.19% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Details
  • placeholder
    Fixed Rate Loan with Orange Advantage

    Owner Occupiers, Principal & Interest, LVR <80%

    variable rate
    comparison rate
    p.a.
    3.60% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees.

    Go to site
    Details
  • placeholder
    Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    variable rate
    comparison rate
    2.19% p.a.
    2.20% p.a.

    Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) and can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Go to site
    Details
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    Discounted Home Value Loan

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.44% p.a.
    2.45% p.a.

    No ongoing service fees. Free unlimited extra repayments and online redraw facility.

    Go to site
    Details

*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.

*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 Loans 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.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.