April home loans snapshot: Here’s where fixed and variable rates now stand
It’s been over two months since the Reserve Bank’s first interest rate cut in March, but the fallout is still being recorded with home loan rates continuing their downward trajectory throughout April.
According to the recently released Mozo Banking Roundup for April 2020, fixed rate cuts once again dominated rate changes in the home loan market as there were 315 cuts recorded in the Mozo database during the month.
While many of the lowest fixed rates for owner occupiers remained unchanged, there were still a number of notable movements in April.
ANZ made cuts of between 19 and 59 basis points to its fixed home loan range. Its fixed rate Breakfree Package now sits at 2.19% (4.00% comparison rate*) for 2 years and 2.29% for 3 years (3.89% comparison rate*) - the lowest comparable rates on offer among the Big Four.
Elsewhere, Kogan Money (60-174 basis points) and Virgin Money (20-160 basis points) both made significant cuts to their respective offers, while Suncorp reduced select fixed rate home loans by up to 35 basis points.
As a result of the recent changes, here’s how the average rates (based on a $400k, owner occupier loan with an 80% LVR) across fixed home loans tracked in the Mozo database sit as of May 5:
- 1-year: 2.71%
- 2-year: 2.65%
- 3-year: 2.72%
- 4-year: 3.05%
- 5-year: 3.08%
And here are the current fixed home loan market leaders in the Mozo database:
Term | Fixed rate | Lender and comparison rate* |
---|---|---|
1-year fixed | 2.09% | Reduce Home Loans (2.72% comparison rate*) & Well Home Loans (2.47% comparison rate*) |
2-year fixed | 2.09% | ING (3.77% comparison rate*), Reduce Home Loans (2.68% comparison rate*) & Well Home Loans (2.44% comparison rate*) |
3-year fixed | 2.09% | Reduce Home Loans (2.64% comparison rate*) & Well Home Loans (2.41% comparison rate*) |
4-year fixed | 2.40% | HSBC (3.13% comparison rate*) |
5-year fixed | 2.54% | ING (3.50% comparison rate*) |
Variable rate cuts continue
While quieter, there was also some action in the world of variable rate home loans during April.
Chief among the changes were those made to the Commonwealth Bank Extra Home Loan. While the rate for borrowers with an LVR below 80% was cut to 2.79% (2.81% comparison rate*), CommBank increased the rate for LVRs above 80% to 3.13% (3.15% comparison rate*).
UBank (25 basis points), Bank of Queensland (17 basis points), Teachers Mutual Bank (25 basis points) and new online lender Yard (25 basis points) were among the other lenders to make variable rate cuts during April.
These latest reductions mean that the average variable rate in the Mozo database (based on a $400,000, owner occupier loan with an 80% LVR) is now at 3.44%, while some of the lowest variable offers in our database are as follows.
Variable rate | Comparison rate* | |
---|---|---|
Reduce Home Loans - Rate Slasher | 2.39% | 2.39%* |
Homestar - Star Essentials | 2.44% | 2.47%* |
Well Home Loans - Well Balanced | 2.47% | 2.50%* |
Freedomlend - Variable | 2.49% | 2.49%* |
Pacific Mortgage Group - Standard Variable | 2.49% | 2.49%* |
RELATED: April savings account snapshot: Further cuts leave BOQ sitting pretty at 2.00%
Interested in seeing how your own mortgage rate stacks up? Check out some of the hot deals in the table below, or head on over to Mozo’s dedicated home loan comparison table to compare fixed and variable rates from a range of lenders.
Compare home loans - rates updated daily
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.
Smart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- interest rate
- 1.75% p.a.
fixed 3 years
- comparison rate
- 2.22% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 30 September 2022. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 3 years2.43% p.a.Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
Basic Home Loan
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- interest rate
- 2.09% p.a.
fixed 3 years
- comparison rate
- 2.43% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.
Celebrate Variable Home Loan
Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
- Hot Deal$3,000 cashback when you refinance with Virgin Money (T&Cs apply)
Special Offer Reward Me Fixed Rate Home Loan
Owner Occupier, LVR <80%, 300k+
interest rate
comparison rate
Initial monthly repayment
1.94% p.a.
fixed 2 years2.77% p.a.Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
Special Offer Reward Me Fixed Rate Home Loan
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
- interest rate
- 1.94% p.a.
fixed 2 years
- comparison rate
- 2.77% p.a.
- Upfront fees
- $450
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes - up to $10,000 per annum
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $300,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $3,000 cashback for new borrowings of at least $300,000, applications by 28 May 2021, settled by 27 August 2021.
Read our Mozo Review to learn more about the Special Offer Reward Me Fixed Rate Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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