You can get a very low 2.59% mortgage rate as part of a Black Friday deal
Borrowers have four days to lock in this promotional rate from Mortgage House.
Time limited home loan deals are fairly common now, but a four-day discount special for Black Friday is a new one.
The 2.59% offer from Mortgage House (comparison rate 2.69%, LVR 80%) starts today and ends at 11:59 on 2 December 2019.
It's 9 basis points lower than the 2.68% fixed rate loan from Well Home Loans, the market's lowest fixed rate mortgage.
How much will that save you in repayments? Let's calculate the difference using a $400,000 home loan with a 30-year loan term.
Interest rate: 2.69%
Monthly repayment = $1,620
Interest rate: 2.59%
Monthly repayment = $1,599
That's a monthly saving of $21, or $252 a year. Over the 30-year life of the loan that's $7,560 less in interest charges.
"It will be the first time in our 33-year history that a special home loan offer has been created just for Black Friday," said Mortgage House General Manager Sean Bombell. "We're thrilled to be part of such a much-anticipated annual event."
Mortgage House is an Australian non-bank lender that routinely offers some of the more competitive interest rates on the market.
The fine print
We don't have a whole lot of details about this offer at the moment. But here are the basics:
- Borrowers need to apply between now and 2 December (that's just the application deadline, your loan settlement will happen later).
- You will need a 20% deposit saved.
- There are also discounted rates for investors, but the 2.59% will likely be for owner-occupiers.
- The offer is available for refinancers too.
- It's unclear how long the rate discount will apply to your mortgage (nothing lasts forever).
So is this offer worth it?
A rate as low as 2.59% is definitely a deal that will save you money. But it's important to look at all the details and features of a mortgage to make sure it suits your needs.
You need to look at fees, features like repayment flexibility and offset accounts, and basic eligibility criteria too. Every lender has restrictions when it comes to property types and postcodes, for example.
And you need to keep in mind that mortgage rates change a lot. Today's hot deal may not be so competitive in a few months (just ask anyone who fixed their loan before the RBA cut the cash rate three times in six months).
If all the other aspects of the loan fit your needs then this is a good deal. But don't get caught up on the interest rate alone.