Tic:Toc offers one of the lowest home loan rates for smaller deposits

author-avatar By on October 19, 2020
Tic:Toc offers one of the lowest home loan rates for smaller deposits

Photo by Jamie Haughton on Unsplash

With a potential RBA rate cut right around the corner, the home loan rate war is heating up with online lender Tic:Toc slashing its variable home loan rate to a new low.

From today, Tic:Toc will be reducing its variable principal and interest (P&I) live-in home loan rate for new customers to a low 2.19% p.a. (2.20% p.a. comparison rate). 

The new low variable rate comes with no upfront or ongoing fees and is available with a deposit as low as 10%. 

It also comes with an optional offset account, and because Tic:Toc is backed and funded by Bendigo and Adelaide Bank, any money in the offset is covered by the $250k deposit guarantee scheme.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 28, 2021. View disclaimer.

To put Tic:Toc's new low rate into perspective, Savings.com.au's research shows a number of home loans below 2.00% p.a.

While many of these loans are fixed rates, variable rate home loans that have a lower advertised interest rate include:

  • Reduce: 1.89% p.a. (1.92% p.a. comparison rate*) variable rate for owner-occupiers on principal & interest payments with LVR of 60% or less.
  • Easy Street Financial Services: 1.95% p.a. (1.99% p.a. comparison rate*) variable rate for owner occupiers borrowing at least $750,000 on principal & interest repayments with LVR of 80% or less.
  • Pacific Mortgage Group: 1.99% p.a. (1.99% p.a. comparison rate*) variable home loan for owner-occupiers on principal & interest repayments with LVR of 60% of less.
  • Loans.com.au: 1.99% p.a. (2.48% p.a. comparison rate*) one-year introductory variable rate for owner occupiers on principal & interest repayments with LVR of 80% or less.
  • Illawarra Credit Union: 1.99% p.a. (2.93% p.a. comparison rate) two-year variable introductory home loan, or two-year fixed home loan for owner-occupiers on principal & interest payments.

However, these loans have either introductory interest rates, meaning they're temporary, or have higher deposit requirements than Tic:Toc's loan. 

"We’re excited we can offer new customers such a sharp home loan rate, which at 2.19% and with no upfront or ongoing fees, delivers on Tic:Toc’s promise of a smarter home loan," Laura Osti, Tic:Toc Head of Marketing & Communications told Savings.com.au.

“The best part is, our digital application and assessment process means a faster and simpler experience.”

Savings.com.au's research shows refinancing to a 2.19% p.a. interest rate could save the average mortgage holder $241 a month in repayments (this is based on a $400,000 owner-occupier home loan making P&I repayments on an original rate of 3.33% p.a.).

It doesn't stop there: Tic:Toc are also offering a sharp fixed two-year principal and interest (P&I) live-in home loan of 2.09% p.a. (2.35% p.a. comparison rate).

Borrowers also only need a 10% deposit and there are no upfront or ongoing fees. 


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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