What are the latest home loan cuts and who's making them?

What are the latest home loan cuts and who's making them?
What are the latest home loan cuts and who's making them?

Australia’s low rate lenders continue to battle it out with variable rates reaching as low as 3.09 per cent.

Over the past few days, non-bank lender Reduce Home Loans launched a new product at 3.09 per cent, receiving the honor of 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 in the past couple of days, down 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.

What are the latest home loan cuts and who's making them?

(Source: Ratecity.com.au)

Ubank, a subsidiary of it's parent company NAB has announced it will be passing on the full 0.25% rate cut effective June 28, and will apply to both new and existing customers.

One competitor, Greater Bank, has broken the 3% barrier with a fixed home loan rate of just 2.99% for the first year before being bumped to 4.1%.
 
Further below are the lowest fixed home loan rates for 1, 3 and 5 year home loans as well as the latest changes to savings and deposit rates.

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.

A side effect of the ongoing rate cuts is that Australia’s credit card debt accruing interest has slid to the lowest level in over 11. 

The RBA credit card statistics released this week show Australia’s debt accruing interest on personal credit cards is now $29.5 billion, down 4.9 per cent year-on-year, and at it's lowest levels since December 2007.

Notably the number of personal credit card accounts has fallen 3.1 per cent year-on-year.

There are now 470,088 fewer active accounts than there were in April 2018.

In addition to this Sally Tindall said, “banks are cracking the whip at their end under instructions from ASIC to assess a person’s ability to repay their entire credit card limit within three years."

“As a result, credit limits have fallen to the lowest level in more than three and half years as new customers are being forced to cut back," she concluded.

What are the latest home loan cuts and who's making them?

(Source: Ratecity.com.au)

New research from Finder found that Australian households could lose over a billion dollars in interest on their savings, following the Reserve Bank’s cash rate cut on Tuesday. 

According to their findings, if banks pass on the RBA’s 25 basis point interest rate cut in full, Australians will lose a whopping $1.3 billion in interest over the course of a year. 

What are the latest home loan cuts and who's making them?

Tags: 
Interest Rates

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