There's A New Way To Get A Discount On Your Home Loan Rate

Do you pay your bills on time? Are you responsible with money? If so, you might qualify for the lowest ongoing variable home loan rate in Australia, thanks to a limited-time offer. For one week only, Reduce Home Loans is offering home loans from just 3.39%. Here are the details!

Reduce Home Loans is bucking the trend of rising home loan rates, offering the lowest ongoing variable rate in the country - 3.39 per cent - to owner occupiers paying principal and interest with a 20 per cent deposit.

The fine print? You need to have a ‘very good’ or ‘excellent’ credit score, as determined by GetCreditScore.

Analysis from RateCity.com.au shows that the average homeowner could save up to $67,127 if they switched from a discounted rate with one of the big four banks to a rate of 3.39 per cent, five years in to a 30 year loan. That’s a saving of $234 per month.

While banks have hiked rates for their existing customers over the last six months, some lenders are still keeping rates competitive for new customers, said Sally Tindall, research director at RateCity.com.au.

“Growth in home loans is slowing, which is putting pressure on profit margins. To counter this, banks are keen to get new customers in the door.

“CBA and HSBC just slashed their lowest variable rates for new customers. Now Reduce has upped the ante yet again, offering discounts of up to 0.05 per cent for customers with very good and excellent credit scores for a limited time.

“That brings their lowest rate down to 3.39 per cent - that’s a hard proposition to argue with.

“If you live in the home you own and have a decent amount of equity, lenders want your business and are likely to reward you with competitive rates to get you on their books,” she said.

The Reduce Home Loan sale is exclusive to GetCreditScore and RateCity.com.au.

For more details visit click here.

Owner-occupier rates

Credit Score

Rates

Max Discount

Very good – excellent

From 3.39%

5 basis points

Average – good

From 3.41%

3 basis points

Investor rates

Credit Score

Rates

Max Discount

Very good – excellent

From 3.79%

10 basis points

Average – good

From 3.81%

8 basis points

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