Tic:Toc drops mortgage rates way down low
How low is a low rate? Try 3.39%.
It's great news for anyone looking for a cheaper home loan and has us wondering if this is the beginning of a rate cut riot.
Only a couple of Tic:Toc's rates have changed, but they were some of the lender's most competitive.
- The Tic:Toc Live in Loan Fixed Rate – 1 Year (Owner Occupier, P&I) has dropped from 3.59% all the way down to 3.39%.
- The Tic:Toc Live in Loan Variable Rate – Principal & Interest has dropped from 3.59% down to 3.47%.
These are easily some of the lowest rates on the market right now.
To get an idea of how much a rate cut like this can save you let's examine how the repayments would change on a 30 year mortgage borrowing $500,000.
- Monthly repayment at 3.59%: $2,270
- Monthly repayment at 3.39%: $2,214
That's a saving of $56 a month or $672 in a year. Over the 30-year life a of a loan that's a huge difference.
And while that enticing 3.39% rate is only for the first year, it reverts to Tic:Toc's variable rate anyway, which means it will likely still be competitive.
Will we see more rate cuts like this soon?
It's definitely on the cards. 92% of Finder's experts are tipping a cut to the cash rate soon, which usually sees lenders passing on some or all of the cut to borrowers in the form of lower variable rates.
And many lenders have cut their fixed rates in the last few weeks, possibly in anticipation of even lower variable rates soon.