May 10, 2016: Almost a quarter of all lenders have now confirmed they will be cutting their variable rates for Australian home owners, with some of the smaller lenders offering up never seen before rates as low as 3.61 per cent.
Homestar Finance has reduced its lowest variable rate to just 3.61 per cent (comparison rate of 3.65 per cent) while Reduce Home Loans’ lowest offering is now 3.65% (comparison rate of 3.66%).
Both lenders’ new rates are effective immediately for both new and existing customers.
Sally Tindall, money editor at RateCity.com.au, said that rates under 4 per cent would become increasingly more common.
“Right now there are almost 20 lenders offering rates for owner-occupiers under 4 per cent, with some reducing their lowest variables to never seen before lows,” she said.
“If the RBA decides to cut again, we’re likely to see rock-bottom home loan interest rates of under 3.5 per cent, while rates under 4 per cent will become the new norm.
“Any owner-occupier paying over the 4.5 per cent mark would have to seriously question the product they are on.”
While a number of lenders were making history with their record-busting rates, there are still around 70 lenders yet to declare their hand.
“Some lenders are still being extremely tight-lipped about whether or not they’ll pass on this cut,” she said.
“If they choose not to cut, customers deserve to know so they can decide whether they want to look for a better deal.”
To see a live list of lenders who have cut rates click here.
The Shakers:
Five of the lowest advertised ongoing variable rates
|
Lender |
New lowest rate |
Comparison Rate |
Effective date |
|
Home Star |
3.61% |
3.65% |
5/05/2016* |
|
3.63% |
4.03% |
05/05/2016* |
|
|
3.64% |
3.64% |
27/05/2016^ |
|
|
3.65% |
3.66% |
5/05/2016 |
|
|
3.70% |
3.70% |
17/05/2016 |
* New rates efffective now for new customers and at a later date for existing customers
^ this product requires an LVR of 30%
The Movers:
|
Company |
Cut |
Effective Date |
Notes |
|
0.20% |
20/05/2016 |
|
|
|
0.19% |
13/05/2016 |
|
|
|
0.25% |
27/06/2016 |
|
|
|
0.20% |
25/05/2016 |
Investors only receive 0.15% cut |
|
|
0.25% |
23/05/2016 |
|
|
|
0.25% |
23/05/2016 |
|
|
|
0.25% |
16/05/2016 |
|
|
|
0.20% |
20/05/2016 |
|
|
|
0.20% |
30/05/2016 |
Investors only receive 0.15% cut |
|
|
0.25% |
18/05/2016 |
|
|
|
0.25% |
16/05/2016 |
|
|
|
0.25% |
20/05/2016 |
|
|
|
0.25% |
19/05/2016 |
Investors only receive 0.20% cut |
|
|
0.25% |
23/05/2016 |
|
|
|
0.25% |
9/05/2016 |
|
|
|
0.20% |
23/05/2016 |
|
|
|
0.25% |
5/05/2016 |
|
|
|
0.25% |
23/05/2016 |
|
|
|
0.25% |
25/05/2016 |
Investors only receive 0.20% cut |
|
|
0.25% |
20/05/2016 |
|
|
|
0.25% |
4/05/2016 |
|
|
|
0.25% |
6/05/2016 |
Start date for existing customers 27 May |
|
|
0.25% |
16/05/2016 |
|
|
|
0.25% |
19/05/2016 |
|
|
|
P&N Bank |
0.14% |
5/05/2016 |
|
|
0.25% |
16/05/2016 |
|
|
|
QPCU |
0.25% |
23/05/2016 |
|
|
0.25% |
23/05/2016 |
|
|
|
0.20% |
5/05/2016 |
|
|
|
0.25% |
23/05/2016 |
|
|
|
0.20% |
25/05/2016 |
Investors only receive 0.15% cut |
|
|
0.25% |
16/05/2016 |
|
|
|
0.25% |
23/05/2016 |
|
|
|
0.25% |
9/05/2016 |
Interest only loans from 0.10% cut |
|
|
0.25% |
1/06/2016 |
|
