Tic:Toc pushes variable home loan rates to new bottom

By Katherine O'Chee · · 2 min read
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Woman diving illustrating home loan rates falling

Online lender Tic:Toc has surged ahead of competitors to offer the lowest variable home loan rate in the Mozo database after a 15 basis point cut this morning. 

The Tic:Toc Variable Home Loan now sits at a new rock bottom of 1.89% (1.90% comparison rate*) for owner occupiers making principal and interest repayments with a maximum loan-to-value ratio (LVR) of 80%. 

Given that its previous rate was 2.04% (2.05% comparison rate*), Tic:Toc’s latest move also means it has now joined a very small pool of lenders offering variable rates that start with ‘1’. 

Tic:Toc’s rate is also available to borrowers with a LVR of up to 90%, and the loan itself comes with an optional offset account (at $10 per month). 

So just how good is Tic:Toc’s new rate? For comparison, it sits 5bp below its closest contender - 1.94% (1.98% comparison rate*) offered by Mortgage House on its Get More, Save More Variable Home Loan - and it’s a massive 133 basis points below the variable rate average in our database. 

So if you’re borrowing $400,000 over 30 years, Tic:Toc’s rate as opposed to the average could save you $99,963 in interest over the life of your home loan. That translates to about $3,332 saved per year. 

Tic:Toc’s decision comes at a time when variable home loan rates have continued to trend downwards. In fact, the variable rate average for owner occupiers (3.22%) is at the lowest point it’s been since Mozo began tracking in 2015. 

Thinking of securing a variable home loan deal while rates are still at a record low? Check out some great offers in the table below, or compare home loans from even more lenders over at our home loans comparison hub.

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Last updated 16 October 2024 Important disclosures and comparison rate warning*

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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