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

By Tom Watson · · 4 min read
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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.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 30 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 5 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,867

    Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

  • Variable Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.98 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,991
    Go to site

    Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.22 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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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. 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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