Effective from today for new customers, the cuts apply to fixed and variable rates for owner occupiers paying principal & interest (P&I), and investors paying interest-only (IO).

The details of the Tic:Toc rate changes are: 

  • Live-in Variable P&I: 15 basis point cut to 1.89% p.a. (1.90% p.a. comparison rate*)
  • Live-in One Year Fixed P&I: 5 basis point cut to 1.84% p.a. (1.90% p.a. comparison rate*)
  • Investor Variable IO: 19 basis point cut to 2.65% p.a. (2.83% p.a. comparison rate*)

Laura Osti, Tic:Toc's Head of Marketing and Communications, said the rate changes had the potential to save borrowers thousands over the life of their loan. 

"We’re able to give customers this kind of saving because of the speed and efficiency of our process, which means faster turnarounds for the customer at a lower price," Ms Osti said. 

Recent research from Savings.com.au found Tic:Toc had one of the quickest home loan approval times in the market, offering same-day approvals, with the fastest approvals coming in under an hour. 

Much of the market has been heading in the opposite direction to Tic:Toc of late, with big four lenders NAB and Westpac just some of the banks hiking rates in recent months. 

Ms Osti said Tic:Toc wanted to give borrowers flexibility and security at a time when speculation was rife as to where the home loan market was heading. 

"There’s a lot of talk about where rates are headed over the next couple of years. We want to give our customers options, so we’ve lowered our one year fixed rate too," she said.

"We think a sharp one year fixed rate is a great option, providing customers a good mix of certainty and flexibility.

"All of our home loans can have a 100% offset account attached, even our fixed loans, which is a unique feature for a low rate home loan with no upfront or ongoing fees." 

The Reserve Bank (RBA) held the cash rate again at 0.10% on Tuesday, but its Board members gave some guidance as to when it would hike the rate. 

Economists from the big four banks believe the central bank will be 'forced' to hike the rate in 2023 - Westpac economists forecast the rate to be 1.25% in 2024.

However, RBA Governor Dr Philip Lowe stated on Tuesday the Bank wouldn't raise the cash rate until its inflation and unemployment goals were met, which it didn't expect would happen until 2024. 

Photo by Malvestida Magazine on Unsplash

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