A fintech has announced rate cuts across its investor home loans, including a 32 basis point reduction to its variable interest only product.
Tic:Toc said the decision comes at a time of falling investor lending. The group has noticed a 33% drop in investment lending in the last quarter to November 2018.
According to figures from the Australian Bureau of Statistics, the value of investment loans has also dropped by more than 20% over the last year and investment housing commitments fell by 0.9%.
Tic:Toc founder and CEO, Anthony Baum, said now may be the opportune time for investors to secure a competitive rate via Tic:Toc’s digital platform.
He said, “We hope our market-leading investment home loan rates will offer some security to investors looking for competitive finance, at a time when we’re seeing a lot of instability as a result of the Royal Commission.
“The benefit of Tic:Toc’s platform is our customers can get full approval for finance in one sitting online, and we pass on the savings of our digital automation to the customer with lower rates and no application, valuation, assessment, annual or settlement fees.”
For the investor variable interest only loan, the rate has moved from 4.31% to 3.99% and 3.95% for its comparison rate.
The interest only two-year fixed product has moved from 4.14% to 3.89% and 3.91% for its comparison rate.
The interest only three-year fixed product has moved from 4.24% to 3.99% and 3.94% for its comparison rate.
Since its launch, Tic:Toc has received more than $1.7 billion in value of submitted home loan applications.