While it is expected that the Reserve Bank of Australia would cut the official cash rate in a few weeks, some lenders just could not wait any longer, with one trimming what was already considered an industry-low rate even further.
Mortgage House already had the market's lowest mortgage rate at 3.44% even before it launched its newest offer at 3.29%, a report in Life Hacker said.
The new rate applies to the lender’s variable-rate home loans and will be available under Mortgage House's Home Loan Prime Early Bird Rate Cut Special.
Also Read: Three more banks join the rate-cut party
Both new borrowers and refinancers will be able to enjoy the low-rate deal. Aside from getting the lowest industry rate, refinancers who will be switching to Mortgage House will also get a cashback offer of up to $1,500.
Mortgage House's 3.29% variable rate is significantly lower than the big four bank's average rate of 4.63%. Life Hacker said a home loan customer switching from the big banks to Mortgage House would be able to save as much as $4,000 annually.
Mortgage House is just one of the lenders who have been jumping in on the rate-cut trend. Recently, ME Bank and NAB-owned UBank both repriced their owner-occupier and investor home loans by up to 30 basis points. NSW-based mutual bank Greater bank also slashed its variable rates by up to 10%.