5 lesser-known mortgage lenders to put on your radar
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There are two key things every person wants in their home loan: a low rate and a lender they can trust. If you you’re not familiar with P&N Bank, now’s the time to put them on your radar.
According to the Mozo database^, the average variable home loan rate is 6.41% p.a., while P&N’s home loan rates start from as little as 5.88% p.a (5.91% p.a. comparison rate*) for borrowers with 40% equity or deposit. Its 2 year fixed rate is even lower at 5.49% p.a. (5.96% comparison rate*).
On a $500,000 home loan over 25 years that’s an annual saving of $1,956, which you could pocket by switching.
P&N is just one of the smaller customer-owned and online banking brands taking it to the big players by offering customers competitive rates, low fees, fast approvals and more personalised service.
So if you’re in the market for a new home loan, here’s a look at P&N as well as some of the other lesser-known lenders that are shaking up Australia’s mortgage scene.
Top P&N Bank Home Loans
P&N Bank Basic Variable Home Loan
- 5.88% p.a. variable rate (5.91% p.a. comparison rate*)
- No ongoing monthly loan maintenance fees
- 40% deposit required
Enjoy a competitive variable interest rate and no ongoing monthly or annual fees with the P&N bank Basic Variable Home Loan. You’ll have the freedom to choose to repay weekly, fortnightly, or monthly and make extra payments without penalty, to pay off your home loan even faster. Plus, there’s free online redraw if you’re ahead on your repayments. Other fees may apply.
P&N 2 Year Fixed Home Loan
- 2 year fixed rates from 5.49% (5.96% comparison rate*)
- No ongoing monthly loan maintenance fees
- 20% deposit required
Enjoy the repayment certainty with a competitive fixed interest rate for 2 years and no ongoing monthly with the P&N bank Fixed Rate Home Loan. You’ll have the freedom to choose to repay weekly, fortnightly, or monthly and make extra payments (up to $25,000) without penalty, to pay off your home loan even faster. Plus, you’ll have the option to split your home loan to a fixed portion of your loan and pay variable rates on the rest. Other fees may apply.
Other leading home loans
Unloan - Variable Home Loan
- 5.74% p.a. variable rate (5.65% p.a. comparison rate*)
- Zero upfront or ongoing fees
- Low cost home loan winner - Mozo Experts Choice Awards 2023, 2024 & 2025^
Unloan’s Variable Home Loan has taken out a low cost home loan award for an impressive third year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner-occupiers a super low 5.74% p.a. variable rate (5.65% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.
loans.com.au Variable Home Loan 90
- Variable interest rate from 5.79% p.a. (5.83% p.a. comparison rate*) for LVR < 90%
- No application fees to pay
- First Home Buyer Loan winner - Mozo Experts Choice Awards 2025^
If you're in the market for a competitive rate on a variable home loan, online lender loans.com.au has come through with the goods. There are no application fees to pay and you only require a 10% deposit to get started. You can borrow between $50,000 to $2,000,000, plus, you’ll have the freedom to make free extra repayments, and redraw them without penalty too. $300 settlement fee applies. (T&Cs apply).
BCU Bank Fixed Rate Home Loan
- 5.49% p.a. for 2 years (5.91% p.a. comparison rate*)
- No establishment or annual ongoing fee
- Just 5% deposit required
- 2024 Mozo Experts Choice Award winner
Member-owned BCU won a 2024 Mozo Expert’s Choice^ for this fixed rate home loan and with no establishment fee, no ongoing annual fee, and competitive rates, it’s easy to see why. You can lock in up to 5 years (rates may vary) and there is an option to make weekly, fortnightly or monthly repayments. During the fixed period you can also make extra repayments of up to $25,000. The loan is also available with just a 5% deposit. Other fees may apply. No offset account.
Regional Australia Bank Home Loan
- Get up to $4,000 cash back (T&Cs apply)
- No ongoing or application fees
- Offset and redraw options available
With variable rates starting from 5.69% p.a. (5.70% p.a) for borrowers with an LVR 60% (40% deposit or equity), plus up to $4,000 cash back Regional Australia Bank’s home loan could be a way for you to save money on your home loan. It has both an offset and redraw option available and you can even split the loan between fixed and variable options. This home loan is also low on fees with no monthly, documentation or approval fees and valuation fees are charged at cost. You’ll get a dedicated relationship manager to provide you with support during and after the application and approval process. The maximum cashback is $4,000 for loans of over $750K (if you apply by 30 June, 2025 and settle before 30 September), see website for cashback offer for other loan amounts and full T&Cs.
^Mozo database as at 14/3/25 based on a $400,000 OO P&I home loan over 25 years (LVR <70%).
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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