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Tic:Toc offers new customers an olive branch and cuts variable home loan rate
In good news for home buyers, competitor lender Tic:Toc has bucked the trend of rising rates and announced it is cutting its Live-In variable home loan rate to 5.69%.
Today’s announcement of a rate cut for Live-In Home Loan customers may offer relief for new customer’s household budgets.
In a higher-rate environment, homeowners are desperately looking towards lenders offering lower-rate home loans to keep their mortgage repayments manageable. This new rate from Tic:Toc is in the top 5% for owner occupier variable rates paying principal and interest on the RateCity database.
The Live-In Home Loan also offers customers access to an offset account. Meaning, you may be able to utilise this feature to further reduce your interest repayments as well.
Live-in Variable Home Loan
- Owner Occupied
- Variable
- 10% min deposit
Purchase and refinance, fast approval times, offset available
Owner-occupiers with 10% deposit may be able to enjoy this low variable rate, unlimited extra repayments and free redraws, plus the option to add an offset account for $10/month.
5.94%
5.95%
A rate cut in a sea of hikes
RateCity research shows that the big four banks have increased interest rates for variable loan customers out-of-cycle with the Reserve Bank of Australia (RBA) multiple times.
For example, CommBank has increased its Basic Variable loan seven timesin addition to RBA-led hikes since 1 March 2023. NAB has also increased its Basic Variable loan four times on top of the three cash rate hikes that occurred since 1 March 2023.
In fact, 87% of all lenders have increased at least one new customer variable rate in addition to the RBA hikes in March, May and June.
Big four bank increases to mortgage rates outside of RBA hikes
Date | Bank | Loan | Change (in addition to RBA hikes) %-pts |
1-March 23 | CBA | Basic variable | up to 0.10 |
1-Mar + 10-Mar 23 | NAB | Basic variable | up to 0.20 |
25-March 23 | CBA | Basic variable | up to 0.70 |
28-March 23 | ANZ | Basic variable | up to 0.21 |
31-March 23 | CBA | Package loan | up to 0.20 |
13-April 23 | Westpac | Basic variable | 0.10 |
14-April 23 | CBA | Package loan | up to 0.12 |
21-April 23 | ANZ | Basic variable | up to 0.10 |
28-April 23 | NAB | Basic variable | up to 0.05 |
12-May 23 | CBA | Basic + package | up to 0.10 |
23-May 23 | NAB | Basic variable | up to 0.10 |
24-May 23 | CBA | Package loan | up to 0.10 |
16-June 23 | CBA | Basic variable | up to 0.10 |
23-June 23 | CBA | Package loan | up to 0.10 |
23-June 23 | Westpac | Basic variable | 0.15% |
14-July 23 | CBA | Basic variable | up to 0.07 |
27-July 23 | ANZ | Basic variable | up to 0.15 |
31-July 23 | NAB | Basic variable | up to 0.10 |
11-Aug 23 | CBA | Basic Variable | up to 0.05 |
Source: RateCity.com.au.
While the major financial institutions in Australia are increasing customer rates, news of rate cuts could be worth paying attention to if you’re on the hunt for a competitive home loan lender.
Tic:Toc Chief Marketing Officer Laura Osti said: “After a period of aggressive pricing in the home loan market, the majors have been outpacing the RBA on rate increases to recoup margins.”
“Tic:Toc has been able to maintain sharp pricing because of the efficiency our technology enables. Our cost to assess a home loan is significantly lower than the majors, which means we can pass those savings back to customers,” Ms Osti said.
“We’re pleased to be able to lower our rates and provide some relief to new customers who are looking to lower their monthly repayments or get the sharpest home loan rates possible.”
Compare home loans in Australia
Product database updated 08 Sep, 2024
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