As some lenders have started to increase even shorter-term fixed rates, online lender Tic: Toc has announced its “lowest rates on record.”
Available on homeowner principal and interest loans, Tic: Toc’s one-year fixed rate is reduced from 0.05% to 1.84% (comparison rate 1.90%), while its variable rate will be reduced from 0.15% to 1.89%. (comparison rate 1.90 percent).
The variable interest rate only for the lender’s investors will also be lowered from 0.19% to 2.65% (comparison rate of 2.83%).
Tic: Toc’s marketing and communications manager Laura Osti said the new variable rate of 1.89% for homeowners has the potential to save thousands of Australians over the life of their loan.
“We are able to offer customers this type of economy because of the speed and efficiency of our process, which means faster turnaround times for the customer at a lower price,” said Ms. Osti.
Tic: Toc’s rate cuts follow the Reserve Bank of Australia (RBA) decision to keep the official spot rate this month at 0.10%.
While RBA Governor Philip Lowe has suggested that we may not see an increase in the cash rate until 2024, when inflation targets are expected to be met, there are growing speculation that the next cash rate hike could come as early as the end of 2022.
“There is a lot of talk about where rates will go over the next two years,” said Osti.
âWe want to offer options to our clients, which is why we also lowered our one-year fixed rate.
“We believe that a one-year fixed rate is a great option, giving clients the right mix of certainty and flexibility.”
While there are still many competitive rates available, a growing number of lenders are increasing their fixed rates despite maintaining the spot rate.