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Demand for fixed rate home loans has surged, with borrowers keen to take advantage of last week's record low rate cut.
The Mozo comparison site saw a 350% lift in visits to its fixed rate loan pages last week compared to the month prior.  
While most lenders have passed on the full 0.25% cut, taking variable rates to as low as 3.98%, fixed rates are even lower.
Mozo data shows in May 2013, the best 3 year fixed rate was 0.24% higher than the best variable, today a popular three year fixed loan can be found for just 3.95%.
“With fixed rate loans closing the gap on variable rates, the appeal of locking-in your loan for 3 years or more has grown considerably since Tuesday.”
“With interest rates likely to stay on hold in the coming months, now could really be the time to fix and reap the savings,” said Mozo director, Kirsty Lamont. 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="2" valign="top" width="168">
Best variable
</td>
<td valign="top" width="43">
Rate
</td>
<td colspan="2" valign="top" width="170">
Best 3 year fixed
</td>
<td valign="top" width="45">
Rate
</td>
</tr>
<tr>
<td valign="top" width="20">
1
</td>
<td valign="top" width="149">
Homestar Variable Rate Loan
</td>
<td valign="top" width="43">
3.98%
</td>
<td valign="top" width="21">
1
</td>
<td valign="top" width="149">
HSBC Fixed Rate Home Loan (Premier)
</td>
<td valign="top" width="45">
3.95%
 
</td>
</tr>
<tr>
<td valign="top" width="20">
-
</td>
<td valign="top" width="149">
Loans.com.au Dream Home Loan Essentials 
</td>
<td valign="top" width="43">
3.98%
</td>
<td valign="top" width="21">
2
</td>
<td valign="top" width="149">
Bank of Queensland Fixed Rate Home Loan
</td>
<td valign="top" width="45">
3.99%
</td>
</tr>
<tr>
<td valign="top" width="20">
3
</td>
<td valign="top" width="149">
Mortgage House Pure &amp; Simple
</td>
<td valign="top" width="43">
3.99%
</td>
<td valign="top" width="21">
-
</td>
<td valign="top" width="149">
ME Bank Flexible Home Loan (Fixed)
</td>
<td valign="top" width="45">
3.99%
</td>
</tr>
<tr>
<td valign="top" width="20">
4
</td>
<td valign="top" width="149">
Loans.com.au Dream Home Loan Offset Variable 
</td>
<td valign="top" width="43">
4.02%
</td>
<td valign="top" width="21">
-
</td>
<td valign="top" width="149">
Newcastle Permanent Fixed Rate Home Loan
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<td valign="top" width="45">
3.99%
</td>
</tr>
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<td valign="top" width="20">
5
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<td valign="top" width="149">
HSBC Home Loan Value 
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<td valign="top" width="43">
4.23%
</td>
<td valign="top" width="21">
-
</td>
<td valign="top" width="149">
Queensland Police Credit Union Fixed Rate Home Loan
</td>
<td valign="top" width="45">
3.99%
</td>
</tr>
<tr>
<td colspan="6" width="426">
Rates are for loans of $300,000 with an LVR of 80%.     Source: Mozo.com,.au as at 8/5/15
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Monthly repayments on the lowest 3 year fixed rate of 3.95% would be $1,575, while for the lowest variable rate loan (3.98%) it’s $1,582 per month. Although it’s only a $7 difference, that amount could be a lot higher if we see rates rise before May 2018.
Mozo’s list of lenders who have passed on the rate cut has grown slowly since Tuesday, however, three of the Big 4 banks haven’t reduced rates by the whole 0.25% amount.
“With funding costs low, there is really no reason why lenders shouldn’t be passing on the full 25 basis point discount,” said Lamont.
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Lender
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<td valign="top" width="57">
Cut
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<td valign="top" width="109">
New variable rate*
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<td valign="top" width="261">
Loans.com.au
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<td valign="top" width="57">
0.25%
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<td valign="top" width="109">
4.02%
</td>
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<td valign="top" width="261">
ING DIRECT
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<td valign="top" width="57">
0.25%
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<td valign="top" width="109">
4.72%
</td>
</tr>
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<td valign="top" width="261">
MEBank
</td>
<td valign="top" width="57">
0.25%
</td>
<td valign="top" width="109">
4.88%
</td>
</tr>
<tr>
<td valign="top" width="261">
Greater Building Society
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<td valign="top" width="57">
0.25%
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<td valign="top" width="109">
5.00%
</td>
</tr>
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<td valign="top" width="261">
ANZ
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<td valign="top" width="57">
0.25%
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<td valign="top" width="109">
5.38%
</td>
</tr>
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<td valign="top" width="261">
NAB
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<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.43%
</td>
</tr>
<tr>
<td valign="top" width="261">
Commonwealth Bank
</td>
<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.45%
</td>
</tr>
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<td valign="top" width="261">
Westpac
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<td valign="top" width="57">
0.22%
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<td valign="top" width="109">
5.48%
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<td valign="top" width="261">
St George
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<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.54%
</td>
</tr>
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<td valign="top" width="261">
Bank of Queensland 
</td>
<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.56%
</td>
</tr>
</tbody></table>
*Effective dates of new rates vary between 8/5 – 26/5.
Lamont says borrowers need to make sure their lender is passing on discounts to existing customers and not just keeping the best deals for new customers.
“Some lenders are holding off announcing the discount for existing customers, so check whether your lender is cutting rates and when you’ll be seeing lower repayments,” said Lamont.
All rates and calculations are based on a $300,000, 80% LVR loan over 25 years. <a href="https://mozo.com.au/home-loans" target="_blank">Rates and calculations are current as at 6 May 2015</a>.
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Which lenders have passed on the May RBA rate cut? Mozo

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Kirsty Lamont from <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a> tells us the five numbers that you need to know following Tuesday’s record low rate cut.
3.98%
This is now the lowest variable home loan rate on the market from Loans.com.au. If this is a lot lower than your current rate it might be time to consider refinancing.
3
Three year fixed rates is where we are seeing home loan rates lower than the best variable. The popular 3 year category is being led by HSBC, offering a 3.95% rate.
$11,160
This is how much interest you could save by keeping your repayments the same and not reducing your repayments in line with a 0.25% discount passed on by your lender – if they’ve passed it on of course! (Based on a $300,000, 80% LVR loan over 25 years)
9
So far, only this many lenders have passed on Tuesday’s full 0.25% rate cut. This means seven have passed on part of the cut and a further 63 have yet to make a decision on whether to pass on a discount. 
$7.8 million
This is how much lenders profit with each day that a potential 0.25% rate cut is not delivered to customers. 
Source <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a>
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The five need-to-know numbers of the week: Mozo's interest rate watch

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Nearly half of Australian mortgage holders have experience a rate rise since August 2016, despite no RBA movement, new research from Mozo.com.au has found.
The comparison rate site suggested lenders are hitting existing borrowers with mortgage rate increases to fund compelling offers for new customers.
Their national survey found 44 percent of mortgage holders have a home loan rate above 4 percent, despite the new benchmark for owner occupier rates being under 3.7 percent.
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More than half of the lenders in the Mozo database now offer a rate under 3.70%. 
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Mozo director Kirsty Lamont says many mortgage holders consider the banks offerings to be 'good enough.' 
“By taking out the best mortgage for your needs, you can easily save tens of thousands of dollars over the course of a loan," Lamont said.
"What we're seeing is that many mortgage holders consider the banks offerings to be 'good enough' when really, they're offering their best deals for new customers while hiking rates for existing customers. 
“Whether you’ve had your home loan for one year, or twenty, it pays to check home loan offerings to ensure you’re getting the best deal for your needs. 
"Despite paltry offerings for many existing mortgage-holders, 42% of Australians believe their home loan rate is competitive and only 18% considered making the switch to a new lender.”
Mozo recently compared 525 home loans from 88 financial providers for the <a id="LPlnk936670" href="https://mozo.com.au/expertschoice/best-home-loans#winners">Mozo’s Expert’s Choice Awards</a> to find the most competitive offerings on the market for both owner occupier and investor home loans.
Newcastle Permanent took out home lender of the year while <a id="LPlnk562009" href="http://loans.com.au/">loans.com.au</a> won awards for both low cost, offset and investor home loan.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/23/mozo_winners.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/mozo_winners.jpg" alt="">
Click here for the full list of <a id="LPlnk321404" href="https://mozo.com.au/expertschoice/best-home-loans">Mozo Expert Choice Home Loan</a> award winners.
Comparing loans, the Experts Choice home loan judges found that the potential savings between an average and competitive loan was up to $68,400 based on a typical loan of $350,000 over 30 years.
When it comes to customer satisfaction, the big four banks ranked poorly with 70 percent of mortgage holders feeling dissatisfied about their current mortgage rate. 
Despite this, only 17 percent consider making a switch. Smaller banks fared slightly better with nearly 60% of respondents believing their home loan is competitive.
Only 27 percent of Tasmanians have a rate above 4 percent compared to a whopping 63 percent of mortgage holders from Northern Territory. 
Interestingly, Tasmanians are fiercely loyal to their banks with an overwhelming 91 percent saying they would not consider switching banks.
 Mortgage holders in the 25-34-year-old age bracket were most like to switch with one in four considering a change in provider while only 8 percent of mortgage holders over 65 years consider making the switch.
“With the banks reserving their best and brightest deals for new customers, it’s worth shopping around to secure the best home loan for you. Mozo research shows that there are owner occupier home loans on the market with rates as low as 3.39%,” says Lamont.
 
 
  
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