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 variable interest rates on the market for owner occupiers.

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

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): Credit Union Australia, 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.

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.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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author-avatar
Emma joined Savings.com.au as a Finance Journalist in 2019. She is a journalist with more than five years experience across print, broadcast and digital media, with previous stints at Style Magazines, 4ZZZ radio, and as editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of young women and millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand. When she's not writing about finance she's watching Greys Anatomy (again).

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