Low rate lenders battle it out with history-making variable rates

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Australia’s low rate lenders are battling it out with variable rates now tumbling as low as 3.09 per cent.

Today, non-bank lender Reduce Home Loans launched a new product at 3.09 per cent, making this the new lowest ongoing variable rate. The product is for new customers with a 40 per cent deposit (60% loan-to-value ratio, LVR).

Mortgage House has also dropped its lowest variable rate today to 3.14 per cent for people living outside of NSW with a 30 per cent deposit (70% LVR), while loans.com.au has dropped its lowest rate to 3.28 per cent.

RateCity.com.au research director Sally Tindall said the non-bank lenders were climbing over each other to claim the lowest rate.

“Ideal borrowers are increasingly being rewarded with lower rates. If you’re an owner-occupier paying down your debt with a bit of equity up your sleeve you’re in the box seat when it comes to rates.

“If the RBA cuts again, we will almost certainly see variable rates drop below 3 per cent,” she said.

Lowest variable rates

Lender Rate LVR
Reduce 3.09% 60%
Mortgage House 3.14%* 70%
Homestar Finance 3.24% 80%
Loans.com.au 3.28% 80%

* Rate is for all states except NSW

Lowest 1-year fixed rates

Lender Rate
Greater Bank 2.99%
UBank 2.99%*
Tic Toc 3.39%
RACQ 3.49%

* Effective 14 June

Lowest 3-year fixed rates

Lender Rate
Reduce 3.19%
BOQ 3.39%
Virgin Money 3.39%
Loans.com.au 3.48%

Lowest 5-year fixed rates

Lender Rate
Westpac* 3.49%
Greater Bank 3.64%
Macquarie 3.79%
G&C Mutual 3.89%

Source: RateCity.com.au *first home buyer offer


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