Tic: Toc cuts lowest mortgage rates on record


Online lender Tic: Toc has lowered rates for both variable and fixed mortgage products to their lowest level.

Effective today for new customers, discounts apply to both fixed and variable rates for homeowners paying principal and interest (P&I) and investors paying only interest (IO).

The details of the Tic: Toc rate changes are:

  • Live variable P&I: Decrease of 15 basis points to 1.89% per year (comparison rate of 1.90% per year *)
  • Fixed one-year P&I: 5 basis points reduced to 1.84% per year (comparison rate of 1.90% per year *)
  • Variable IO investor: 19 basis points reduced to 2.65% pa (comparison rate of 2.83% pa ​​*)

Laura Osti, Tic: Toc’s head of marketing and communications, said rate changes have the potential to save thousands of borrowers over the life of their loan.

“We are able to offer customers this type of economy because of the speed and efficiency of our process, which means faster turnaround times for the customer at a lower price,” said Ms. Osti.

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

Much of the market has been heading in the opposite direction to Tic: Toc lately, with the big four lenders NAB and Westpac that a few of the banks have raised their rates in recent months.

Ms Osti said Tic: Toc wanted to give borrowers flexibility and security at a time when speculation was rife about the direction of the mortgage market.

“There’s a lot of talk about where rates will go over the next two years. We want to offer options to our clients, so we’ve lowered our one-year fixed rate as well,” she said.

“We think a one-year fixed rate is a great option, giving clients a good mix of certainty and flexibility.

“All of our home loans can have a 100% offsetting account, even our fixed loans, which is a unique feature for a low rate home loan with no upfront or ongoing charges.”

The Reserve Bank (RBA) again kept the spot rate at 0.10% on Tuesday, but members of its board have given indications as to when it will raise the rate.

Economists from the Big Four banks believe the central bank will be “forced” to raise the rate in 2023 – Westpac economists predict the rate will be 1.25% in 2024.

However, RBA Governor Dr Philip Lowe said on Tuesday that the Bank would not increase the cash rate until its inflation and unemployment targets were met, which it had expected. not to happen before 2024.


Photo from Malvestida Magazine on Unsplash


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