IT’S the great rates race, and millions of Australian mortgage customers risk being left behind.
Variable home loan interest rates are moving in both directions as lenders jostle for position, making now more important than ever to check your mortgage.
Research by comparison website Mozo.com.au found that more than a dozen smaller and mid-sized lenders increased variable rates last month, following the lead of major banks Westpac, ANZ and the Commonwealth Bank.
However, a handful of lenders announced variable rate cuts, including HSBC, online lender Tic Toc, and CommBank lowering its basic variable home loan product by a quarter of a percentage point to 3.89 per cent.
Mozo director Kirsty Lamont said the rate cuts indicated that competition was heating up as the mortgage market cooled down.
“You could be forgiven for thinking lenders have the yoyo out on rates at the moment,” she said.
“We are seeing some lenders make tactical offers to attract the right buyers, typically owner-occupiers with low loan-to-value ratios.”
Lenders were falling over themselves to sign up owner occupiers who had built at least 20 per cent equity in their homes, Ms Lamont said.
“Check your loan-to-value ratio and if it’s 80 per cent or below, start comparing rates and push for a better deal,” she said.
Variable rate home loans