Lenders continue to slash rates
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.