The lowest ongoing variable home loan rate in Australia has today dropped to 3.29 per cent.
In a rare move, lender Mortgage House has pre-empted the RBA and decided to offer new customers a rate cut before a decision is made in 11 days’ time.
The RBA cash rate has been on hold for a record 33-months at 1.5 per cent, however, Governor Philip Lowe has this week said he will consider cutting rates at the next board meeting.
“Usually lenders wait for the Reserve Bank to announce its cash rate decision, before moving their own home loan rates,” said RateCity.com.au research director Sally Tindall.
“Offering Australia’s lowest ongoing variable rate to new customers before the RBA meets is a clever marketing tool to get business in the door.
RateCity research found that for an average home loan customer on a discounted variable rate with one of the big four banks, switching to this home loan special at 3.29 per cent could save them as much as $3,868 a year.
“Now that Mortgage House has set the new benchmark, we expect other lenders will drop their variable rates in a bid to poach customers from their competitors,” she said.
Mortgage House Early Bird Rate Cut Special vs big four discounted variable rate
|Interest rate (%)||Estimated savings per month||Estimated savings over 12 months|
|Mortgage House special||3.29%||–||–|
|Big 4 bank average package rate||4.63%||$322||$3,868|