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

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

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

LenderRateLVR
Reduce3.09%60%
Mortgage House3.14%*70%
Homestar Finance3.24%80%
Loans.com.au3.28%80%

* Rate is for all states except NSW

Lowest 1-year fixed rates

LenderRate
Greater Bank2.99%
UBank2.99%*
Tic Toc3.39%
RACQ3.49%

* Effective 14 June

Lowest 3-year fixed rates

LenderRate
Reduce3.19%
BOQ3.39%
Virgin Money3.39%
Loans.com.au3.48%

Lowest 5-year fixed rates

LenderRate
Westpac*3.49%
Greater Bank3.64%
Macquarie3.79%
G&C Mutual3.89%

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

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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