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
* Rate is for all states except NSW
Lowest 1-year fixed rates
* Effective 14 June
Lowest 3-year fixed rates
Lowest 5-year fixed rates
Source: RateCity.com.au *first home buyer offer