A round of rate reductions from various lenders has helped home loan interest rates hit 60-year lows, new research has revealed.
Over the past month, a number of lenders have cut the interest on their home loans, including Citibank, CUA, AMP, CBA and Westpac to name but a few.
In addition, Loans.com.au yesterday launched a 4.99 per cent ‘blackboard special’ online rate for new home purchases.
These recent rate cuts mean the average home loan rate is on a par with rates from 57 years ago.
Loans.com.au managing director Marie Mortimer said the cheap rates on the market, including the lender’s own 4.99 per cent rate, should attract plenty of interest from borrowers.
“Loans.com.au has had low competitive rates for a while now and we are starting to see quite a number of the internet-savvy consumers entering the property market as it begins to improve,” she said.
“When you consider that a half a per cent reduction on your home loan interest rate to this rate can save you about $1,500 a year on a $300,000 loan, it makes sense to shop around.”