Tic:Toc cuts variable home loan rates to 'lowest ever'

author-avatar By on May 11, 2021
Tic:Toc cuts variable home loan rates to 'lowest ever'

Online lender Tic:Toc cut variable rates on some home loans today by 15 basis points to the lowest they've ever been.

The lender's variable rate paying principal & interest (P&I) for owner occupiers was cut down to 2.04% p.a. (2.05% p.a. comparison rate*), for loan-to-value (LVR) ratios up to 90%.

Tic:Toc now also claims to have the lowest fee-free variable loan paying (P&I) for investors, now down to 2.19% p.a. (2.20% p.a. comparison rate*) for borrowers with maximum LVRs of 90%.


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.

Base criteria of: a $400,000 loan amount, variable, fixed, 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.

Tic:Toc head of marketing and communications Laura Osti said there's now "no excuse" not to find a competitive interest rate.

"Tic:Toc wants to prove to Australians that refinancing to a lower rate isn’t a burden, it’s a right," she said.

"We’ve made the process fast and simple, so that Australians can take control and look after themselves by getting the best possible home loan for them."

Related: UBank removes LMI for 15% deposits, Athena cuts variable rates

Fixed loans continue their hiking trip

As well as some cuts, Tic:Toc also raised interest rates on some home loans, most notably in the fixed space.

Some highlights include:

  • Investment Fixed IO 1 Year: 43 basis point rise to 2.82% p.a. (2.85% p.a. comparison rate*)
  • Live-In P&I Fixed 4 Years: 10 basis point rise to 2.59% p.a. (2.23% p.a. comparison rate*)

Tic:Toc is not the only lender to raise rates on fixed loans lately, with Westpac, Aussie, UBank, and Citi having done so in recent weeks.


Photo by Andrea Natali on Unsplash

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.

*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
Harrison joined Savings in 2020. He is an experienced journalist, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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