August home loan snapshot: Cashback deals, green loans and new variable rate lows

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If you needed proof that competition is running hot for Australian mortgage holders, the last few weeks has done just that, as lenders have taken their knives to home loan rates once again.

Online lenders have led the charge, reducing their variable rates offers to the point that some now feature a rate starting with a ‘1’. But these rate cuts haven’t been the only thing grabbing the headlines recently, as a host of new cashback deals and green home loans have also hit the market.

So for a round up of the latest rate changes and new offers, plus a look at the lowest rates currently in our database as, read on.

Latest rate changes 

As mentioned above, most of the notable changes in the past month have come from lenders making cuts to their variable home loan rates. In fact, there were enough cuts registered last month to push the average variable rate for owner occupiers in the Mozo database to a new record low of 3.20% (since tracking began in 2015).

  • AMP reduced the variable rate on its Essential Home Loan Special by 48bp to 2.29% (2.32% comparison rate*) for owner occupiers with an <80% LVR
  • Macquarie took 10bp off of its Basic Home Loan for owner occupiers with an LVR below 80%, meaning the new variable rate is 2.39% (2.39% comparison rate*)
  • Tic:Toc briefly grabbed the rate leading position in our database at the 80% LVR tier for owner occupiers after cutting 15bp off of its Variable Home Loan. The new rate is sitting at a super low 1.89% (1.90% comparison rate*)
  • Well Home Loans reduced the rate on its Well Balanced loan for owner occupiers (<80% LVR) by 18bp, meaning its rate is now just 1.99% (2.02% comparison rate*)

Meanwhile, fixed rates are still seesawing, with lenders continuing to cut shorter term rates while lifting rates on longer terms. Some of the notable recent changes include:

  • Citi reduced the 3-year rate on its Fixed Rate Loan by 10bp, meaning the new rate is 1.99% (4.42% comparison rate*) for owner occupiers with an <80% LVR
  • Great Southern Bank took 20bp off of the 2-year rate on its Fixed Rate Loan, meaning the new rate for owner occupiers with an <80% LVR is 1.89% (4.04% comparison rate*)
  • UBank added between 4 and 25bp to the 1, 3 and 5-year fixed rates on its UHomeLoan (Fixed) product for owner occupiers, though its rates remain some of the most competitive in our database

Lowest home loan rates

So how do those new rates from the lenders above compare to some of the lowest rates in our database? Here’s a look at what’s on offer for owner occupiers (P&I repayments, <80% LVR), though it’s also worth noting that there are even sharper rates on the market for borrowers with even lower LVRs.

Lowest variable rates - Mozo database (August 1, 2021)^^

LenderLoanRate

Reduce Home Loans

Super Saver1.88% (1.97% comparison rate*)
Tic:TocVariable Home Loan1.89% (1.90% comparison rate*)
Well Home LoansWell Balanced1.99% (2.02% comparison rate*)
Pacific Mortgage GroupStandard Variable2.04% (2.04% comparison rate*)
HomestarStar Essentials2.04% (2.09% comparison rate*)

Lowest fixed rates - Mozo database (August 1, 2021)^^

TermRate leaderRateMozo average
1-yearGreater Bank1.69% (3.50% comparison rate*)2.30%
2-yearGreater Bank1.79% (3.35% comparison rate*)2.25%
3-yearMOVE Bank1.89% (3.14% comparison rate*)2.34%
4-yearTeachers Mutual Bank2.14% (2.90% comparison rate*)2.53%
5-yearBankVic2.39% (3.47% comparison rate*)2.78%

New cashback deals and green home loans

Beyond interest rate changes, several lenders also came out with new cashback deals in the past month, though perhaps even more interesting is the launch of a number of new green home loans. Until now, only a handful of lenders have released dedicated green home loan products, though it's a trend we’re likely to see increase in the months and years ahead. 

Cashback deals

  • Suncorp launched a new $3,000 cashback offer for refinancers looking to switch a loan of at least $750,000 (max. 90% LVR) to an eligible Suncorp home loan
  • ING announced cashback deal of $3,000 cashback deal for refinancers who are willing to switch an existing loan of $500,000+ (max. 80% LVR) from another lender

Green loans

  • Last month loans.com.au launched its Green Home Loan which offers borrowers a discounted rate if their home has a 7.0 star rating or higher under the Nationwide House Energy Rating Scheme (NatHERS).
  • Non-bank lender Firstmac is also incentivising borrowers ‘green homes’, offering a 0.40% rate discount to borrowers with homes rated 7.0 stars or more under the NatHER Scheme.
  • Announced earlier this year, the Commonwealth Bank recently rolled out its Green Loan to customers across the country. While it’s not a home loan, the Green Loan will only be available to mortgage customers and it can be used to purchase items like solar panels, battery packs and electric vehicle chargers.

RELATED: Top Green Home Loans in Australia

Time to make the most of the low interest rates on offer from many lenders? Get started today by browsing through the rates, fees and features available on different loans using the handy Mozo home loan comparison tables.

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.

Compare home loans - last updated 23 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Smart Booster Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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  • Mozo Expert Choice Badge
    UHomeLoan - Discount Offer
    interest rate
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    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

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  • Mozo Expert Choice Badge
    Celebrate Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a. variable
    1.89% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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  • Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

    Details
  • Mozo Expert Choice Badge
    Variable Home Loan Special
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    Details
  • Basic Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.14% p.a. variable
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

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  • Discounted Home Value Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.97% p.a. variable
    1.98% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Plus, $3,288 cashback offer (conditions apply).

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  • Special Real Deal Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.22% p.a. variable
    2.26% p.a.

    No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly) . $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent.

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* 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, loan amount and term entered. 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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