Australia's cheapest home loans revealed


07 Jan 2021

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Finding the right home loan could mean the difference between tens of thousands of dollars in interest saved over the life of a loan, but Aussie borrowers can be forgiven for finding it hard to pick the best option given the mountain of different lenders and rates available.

Thankfully, with over 50 years of financial services experience between them, the Mozo experts have a serious knack for identifying great value loans. And they used it to compare 436 loans from 86 lenders in the annual Mozo Experts Choice Awards, to identify the best value options for Aussie borrowers.

So whether you’re refinancing, investing or looking to buy a new home, read on for some of the best, low rate home loans on the market to help you start saving today.

Mortgage Crushing Home Loans Smart Home Loan 80
  • Low 2.48% variable rate (2.50% p.a. comparison rate*)

  • $0 application or ongoing fees

  • Unlimited free extra repayments and redraw facility

Our verdict

Looking for a loan that's easy on your wallet? Look no further than the Smart Home Loan 80 from This low rate, low fee mortgage is packed with handy features like the option to make free extra repayments, unlimited free redraw and a split rate option. With all this value on offer and no pesky fees to boot, it's no surprise the Smart Home Loan took out a Mozo Experts Choice Low Cost Home Loan Award for 2020.

Where do I get it? Head over to to find out more >>

UBank UHomeLoan - Discount Offer
  • New 2.34% p.a. variable and comparison rate*

  • $0 annual or upfront application fee

  • Free extra repayments and redraw facility

Our verdict

With a super low interest rate, no fees to apply and no annual service fee, the UBank UHomeLoan is a great budget-friendly option for refinancers that comes with the security of being backed by NAB. The new low, variable rate is available for loans of $200,000 plus with a minimum deposit or 20% or more, and you can choose monthly, fortnightly or weekly repayments to suit your budget. No wonder it was a slam dunk for a Best Low Cost Home Loan Award.

Where do I get it? Head over to UBank to find out more >>

Athena Celebrate Variable Home Loan
  • New 2.19% variable rate (2.19% comparison rate*)

  • No application, valuation or ongoing fees

  • Mozo Experts Choice Best New Home Loan Winner 2020

Our verdict

New online mortgage challenger Athena is taking on the banks with a customer first approach and some of the best value mortgages on the market. This competitive variable home loan has one of the lowest rates around and no application, valuation or ongoing fees. It also offers free extra repayments and a free redraw facility. Plus, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to borrowers with a 40% deposit, this  Athena Home Loan is shaking up the mortgage market.

Where do I get it? Head over to Athena to find out more >>

Suncorp Fixed Home Loan Special Offer
  • 1.89% fixed rate for 2 years (2.04% comparison rate*)

  • Free extra repayments up to $500/month during fixed term

  • Money Magazine Bank of the Year 2020, 2019, and 2018

Our verdict

This stand-out fixed home loan from Mozo Experts Choice winner Suncorp boasts one of the lowest interest rates in our database. And aside from the certainty you’ll get on your repayments for the first two years, you'll also enjoy the ability to make free extra repayments up to $500 each month during the fixed term, to help you pay down your loan down faster. The $375 annual fee is waived in year one and there are no upfront fees.

Where do I get it? Head over to Suncorp to find out more >>

86 400 Neat Home Loan
86 400
  • Ultra low 2.19% p.a. variable rate (2.20% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • Minimum 60% LVR required

If saving thousands on your mortgage is your thing, then 86 400 might just be your lender of choice. Boasting one of the lowest variable rates on the market for borrowers with at least 40% deposit, this super sharp loan also comes neatly packaged with a number of great features including unrestricted extra repayments and free online redraws. 86 400 is an online lender and its simple digital application faster helps you get a decision, and a home loan, faster.

Where do I get it? Head over to 86 400 to find out more >>

Virgin Money Special Offer Reward Me Fixed Rate Home Loan
Virgin Money
  • 2.04% fixed rate for 2 years (2.79% comparison rate*)

  • Make up to $10,000 p.a. of free extra repayments

  • $3,000 cashback offer for refinancers

Our verdict

Virgin Money's 2 year fixed rate home loan is a top option for borrowers looking to lock in while rates are at record lows without paying the price later on, as the low 2.79% comparison rate* means your loan will still be competitive when the fixed period ends. Extra benefits include the freedom to make up to $10,000 a year in extra repayments and earn thousands of Velocity Points over the life of the loan, not to mention the $3,000 cashback offer for refinancers.

Where do I get it? Head over to Virgin Money to find out more >>

UBank UHomeLoan
  • New 1.95% fixed rate for 3 years (2.36% comparison rate*)

  • Free extra repayments up to $20,000 p.a.

  • Fast and easy online application process

Our verdict

Want to lock in a super low home loan rate but loathe the hassle of a long home loan application process? Calling UBank to the rescue! The UBank 3 year fixed rate UHomeLoan could be a great choice for borrowers who like the stability of a fixed rate and a super-speedy application process. It comes with conveniently flexible repayment options and the ability to make free extra repayments up to $20,000 each year so you can pay off your loan faster.

Where do I get it? Head over to UBank to find out more >>

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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 loans Awards

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

This is just a selection of our Mozo Experts Choice Home Loan winners, announced in 2020. Head over to our dedicated Awards page to see the full list of winners.

The Mozo Experts Choice Awards recognise products that deliver exceptional value or benefits to consumers. Our judges base their decision on hard-nosed calculations of value to the consumer, using Mozo’s extensive product database and research capacity.  Product providers don’t pay to be in the running and we don’t play favourites. Award winners may choose to purchase a licence to use their award in their own marketing and may choose to list products on the Mozo website in a way that may generate revenue for Mozo.

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