At any given time, there’s at least two full percentage points between the biggest and best mortgage rates, experts say.
And the gap is widening again: Australia’s lowest variable home loan rate, which is offered by Reduce Home Loans, has dropped to an all-time-low of 2.19 per cent.
“The records just keep tumbling,” Canstar’s finance expert Steve Mickenbecker said.
“Reduce Home Loans new variable rate of 2.19 per cent is an all time low.”
The new rate is a whopping 1.28 per cent below the average variable rate, and could see borrowers save $272 per month on the average $400,000 loan over 30 years, Mickenbecker said.
“Current low rates mean it’s a great time for borrowers to ease the family budget with lower repayments,” he said.
“For those coming out of COVID-19 in good financial shape, lenders are competing hard for their business.”
These are the lowest home loan rates on the market:
This is compared to fixed rates at the big banks:
If you opt for a low fixed rate, Mozo director Kirsty Lamont previously warned borrowers to take note of what variable rates they could return to after the fixed term ends.
"When looking for a fixed rate home loan it’s important to consider the automatic revert rate, so you aren’t forced to refinance at the end of your term," she said.
"The average revert rate for fixed home loans is 3.62 per cent but some lenders have lower revert rates."
It’s also important to note that advanced repayments are not possible on most fixed home loans.
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