Australia's top home loans under 3 percent

Kirsty Lamont

03 Sep 2020


With home loan rates dropping to new record lows this year in the wake of the Reserve Bank's 'Coronavirus' rate cuts, there's never been a better time to compare your current home loan against the best on market and see how much you could save by switching.

Mozo's analysis reveals that there is now a huge difference between the average home loan rate and the best on the market. In fact, the average big 4 bank borrower with a $400K owner occupier home loan could now save up to $3,320 a year by switching. That's almost $100,000 in savings over the life of a 30 year loan!

Finding the best value home loans can be hard work given the mountain of choice on offer, which is why the Mozo experts are committed to doing the hard work for you. Read for our Editor's run down of some of the best value Mozo Experts Choice Winning home loans on the market today...

Mozo Experts Choice Winning Home Loans

Promoted Smart Home Loan 80
  • 2.48% variable rate (2.50% p.a. comparison rate*)

  • Free extra repayments and unlimited redraw

  • No application or ongoing fees

This super low variable rate from popular online lender is a bona fide mortgage crusher, and they've done away with pesky fees as well. With unlimited free extra repayments, free redraw and a split rate option, you'll enjoy lots of flexibility without having to pay a premium for bells and whistles like an offset account. If you’re borrowing $1 million or less and have at least a 20% deposit saved up, the award-winning Smart Home Loan really is a smart choice.


UBank UHomeLoan - Discount Offer
  • 2.49% variable & comparison rate*

  • $0 annual or upfront application fee

  • Free extra repayments and redraw facility

Our experts awarded UBank Best Bank Home Lender of 2020 for its winning combination of ultra low rates, minimal fees and super streamlined online application processes. Borrowers with a 20% deposit can apply for this cracking variable loan and enjoy no upfront or ongoing fees. You can choose to make monthly, fortnightly or weekly repayments to suit your budget plus take advantage of free extra repayments and redraw. No wonder it was a slam dunk for a Best Low Cost Home Loan Award. Available for loans of $200,000 or more. 


HSBC 2 Year Fixed Rate Home Loan
  • 2.09% fixed rate for 2 years (2.98% comparison rate*)

  • No upfront application or ongoing service fees

  • Mozo Experts Choice Fixed Home Loan 2020

This value-packed 2 year fixed rate home loan gives you the security of monthly repayments while still taking advantage of flexible features like the freedom to make free extra repayments up to $10,000 a year. You’ll have the ability to split your loan between fixed and variable rates, and as an added bonus, there are no application and ongoing fees to pay. You'll even get a free relationship manager to guide you through the application process. Available to borrowers with a 20% deposit or more.


Athena Celebrate Variable Home Loan
  • 2.34% variable rate (2.34% comparison rate*)

  • No application, valuation or ongoing fees

  • Mozo Experts Choice Best New Home Loan Winner 2020

The new Celebrate Variable Home Loan from Athena features a competitively low rate and a customer first approach, helping Aussies around the country save money and pay off their mortgages sooner. 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.


Homestar Star Essentials Home Loan
  • Ultra low 2.29% p.a. variable rate (2.32% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • No monthly or ongoing account fees

If saving thousands on your mortgage is your thing, then Experts Choice award winner Homestar might just be your lender of choice. This popular Australian non-bank lender has been offering low-cost home loans since 2004, and the Star Essentials home loan is no exception. Boasting one of the lowest variable rates on the market plus no ongoing fees, this super sharp loan also comes neatly packaged with a number of great features including unrestricted extra repayments and free online redraws. Plus, refinancers receive up to $1,500 cashback or upfront fees waived on purchases for applications received by 31 October, 2020.


Qudos Bank Fixed Rate Home Loan
  • 2.29% 3 year fixed rate (2.82% comparison rate*)

  • No application or annual fees

  • Extra repayments allowed (free up to $10,000 p.a.)

Ready to lock in a sub 3.00% home loan rate? Not only is the Fixed Rate Home Loan from Qudos Bank a 2020 Mozo Experts Choice Award winner, it’s giving borrowers some seriously competitive fixed rates for those seeking repayment certainty. But there’s more, because there are no upfront or ongoing fees to budget for, you’ll even be able get ahead on your loan by making use of the extra repayments feature (free up to $10,000 per year).

*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.

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 March 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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