Lenders con­tinue to slash rates

Warwick Daily News - - NEWS -

HOME loan cus­tomers should be pounc­ing on rock-bot­tom deals as dozens of lenders con­tinue to slash their mort­gage in­ter­est rates.

Com­pe­ti­tion in the loans market is fiercer than ever and there’s no signs of it slow­ing down — at least 30 lenders have made home loan vari­able rate cuts since the start of last month.

The aver­age vari­able rate cut for an owner oc­cu­pier pay­ing prin­ci­pal and in­ter­est has been 15 ba­sis points, de­liv­er­ing cus­tomers with a stan­dard $300,000 30-year home loan sav­ings over nearly $10,000 over the life of the loan.

And de­spite the Re­serve Bank of Aus­tralia keep­ing the cash rate on hold at 1.5 per cent this week and pre­dic­tions it may not move again un­til 2019 there’s plenty of sav­ings still to be had as lenders are mov­ing re­gard­less of the cash rate, Mozo spokes­woman Kirsty La­mont said.

“More than one third of the lenders in our data­base has made at least one vari­able rate cut since the start of Oc­to­ber,’’ she said.

“We are now see­ing 70 lenders of­fer a head­line vari­able rate be­low four per cent to owner oc­cu­piers pay­ing off a prin­ci­pal and in­ter­est loan.”

She said first home buy­ers were the big­gest win­ners of re­cent rate falls be­cause “it’s mak­ing it even more af­ford­able to get into the market now with prop­erty prices eas­ing and rate mov­ing even lower.”

For owner oc­cu­piers on P & I loans, Mozo anal­y­sis shows the low­est rate avail­able deal on of­fer is by Re­duce Home Loans at 3.39 per cent.

Aussie Home Loans’s chief ex­ec­u­tive of­fi­cer James Sy­mond said for owner oc­cu­piers “the home market has never been bet­ter”.

“I don’t think these rates will be ma­te­ri­ally lift­ing any time soon,’’ he said.

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