While some lenders have begun to hike even their shorter term fixed rates, online lender Tic:Toc has announced its ‘lowest rates ever’.
Available on owner occupier principal and interest loans, Tic:Toc’s one-year fixed rate is being reduced by 0.05 per cent to 1.84 per cent (comparison rate 1.90 per cent), while its variable rate will reduce by 0.15 per cent to 1.89 per cent (comparison rate 1.90 per cent).
The lender’s investor interest only variable rate will also be lowered by 0.19 per cent to 2.65 per cent (comparison rate 2.83 per cent).
Tic:Toc’s head of marketing and communications, Laura Osti, said the new owner occupier variable rate of 1.89 per cent has the potential to save Australians thousands over the life of their loan.
“We’re able to give customers this kind of saving because of the speed and efficiency of our process, which means faster turnarounds for the customer at a lower price,” Ms Osti said.
Tic:Toc’s rate cuts follow the decision by the Reserve Bank of Australia (RBA) to leave the official cash rate on hold this month at 0.10 per cent.
While RBA Governor Philip Lowe suggested that we may not see a cash rate increase until 2024, when it is anticipated for inflation targets to be met, there is growing speculation the next cash rate hike could come as early as late 2022.
“There’s a lot of talk about where rates are headed over the next couple of years,” Ms Osti said.
“We want to give our customers options, so we’ve lowered our one-year fixed rate too.
“We think a sharp one-year fixed rate is a great option, providing customers a good mix of certainty and flexibility.”
While there are still plenty of competitive rates available, a growing number of lenders are hiking their fixed rates despite the cash rate being held.