A leading financial comparison website has found 50 of its lenders now offer home loans that equate to under $50 a day for an average property.
RateCity.com.au found 126 loans under 2 per cent, with research director Sally Tindall claiming it was the new norm.
“At the start of this month a rate under 2 per cent was as rare as hens’ teeth. Today there’s well over 100 of them,” she said.
“On a $400,000, 30-year mortgage, a loan under 2 per cent costs less than $49 a day, even when paying down both principal and interest.”
It’s what is keeping record clearance rates and amazing prices in property, along with government help for fist time home buyers.
RateCity says Borrowers are paying less than $91 a day for loans of $750,000 and $122 a day when they borrow $1m.
“Two years ago, the lowest variable rate was 3.44 per cent. Today it’s 1.77 per cent and it’s not just the low-cost lenders that have moved. The whole market has been forced to follow behind them.”
Fixed home loan rates are also tumbling. Banks are now offering a three-year fixed home loan rate of 1.89 per cent.
According to interest rate comparison site, Mozo, it’s the lowest commercial fixed interest rate (with an 80 per cent Loan to Value Ratio or LVR) the country has ever seen.
Fixed rates are dropping to all-time lows because the banks are desperate for your money.
And mortgage brokers, too, are hunting new customers with great cash deals to tempt you to switch your home loan.