Australia's cheapest home loans of 2020
Mozo
28 May 2020
Whether you’re buying a new property or refinancing an existing loan, taking advantage of some of the cheapest rates in years is an absolute must! Compared to the average big bank rate a typical borrower could save as much as $90,000 over the life of the loan* by opting for one of the cheapest home loan rates.
Where can you find a great value deal? It’s no secret, because Australia’s best value loans have been revealed in the 2020 Mozo Experts Choice Awards which compared 436 home loans from 86 lenders across Australia.
To make things simple we’ve wrapped up some of the cheapest home loans (hint: their rates all start with a ‘2’) on offer from the 2020 Mozo Experts Choice Award winners below.
Mozo Experts Choice Winning Home Loans
Promoted
UBank UHomeLoan - Discount Offer
2020 Home Lender Bank of the Year
2.49% variable rate (2.49% comparison rate*)
No application, ongoing or exit fees
Our verdict
Nothing says great value home loan more than a super low interest rate. But would you expect anything less from 2020 Home Lender Bank of the Year, UBank? The UHomeLoan Discount Offer more than lives up to its hype as one of Australia’s cheapest loans, because aside from the seriously low rate available for borrowers wanting a loan of $200,000 or more, it’s also completely free of upfront, ongoing or exit fees.
Where do I get it? Head over to UBank to find out more >>
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loans.com.au Smart Home Loan 80
2.57% variable rate (2.59% comparison rate*)
Free extra repayments and redraws
$0 ongoing service fee
Our verdict
Online lender loans.com.au has been offering up some of Australia’s cheapest home loans for years and the 2020 Mozo Experts Choice Award winning Smart Home Loan is no exception. With a razor sharp interest rate, zero ongoing fees to stress over and a few handy features to make life easier (think free extra repayments and free redraws), this is a loan that’s sure to grab your attention!
Where do I get it? Head over to loans.com.au to find out more >>
Promoted
HSBC 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
Our verdict
This superb value 2 year fixed rate home loan gives you the security of monthly repayments while still taking advantage of flexible features like the ability to make free extra repayments up to $10,000 a year. You’ll be able to split your loan between fixed and variable rates, and as an added bonus, there are zero 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.
Where do I get it? Head over to HSBC to find out more >>
Promoted
ING Mortgage Simplifier
2.59% variable rate (2.62% comparison rate*)
No service or application fees
Free extra repayments and redraw facility
Our verdict
The Mortgage Simplifier Home Loan is chock-full of value, from ING, the Mozo Experts Choice Award winner for Australia's Best Bank. With a great low variable rate, no monthly or annual account fees, unlimited additional repayments and free redraws this loan features all the perks you’ll want in a home loan. What's more, by rounding up purchases on your linked Orange Everyday account, every card purchase will help to directly reduce your outstanding home loan balance.
Where do I get it? Head over to ING to find out more >
Promoted
Athena Variable Home Loan
2.59% variable rate (2.55% comparison rate*)
Free extra repayments and redraw facility
Double Mozo Experts Choice Award winner for 2020
Our verdict
Online lender Athena is on a mission to win customers over from the big banks, and the Athena Variable Home Loan is one of the best value home loans around. This mortgage features a killer variable rate that stays great from day one to day none, a loyalty bonus just for making your repayments on time plus no application, valuation or ongoing fees. Initially available only to refinancers, this Athena Home Loan is now available to home buyers buying an established property in a capital or major regional city.
Where do I get it? Head over to Athena to find out more >>
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UBank UHomeLoan
2.14% fixed rate for 3 years (2.41% comparison rate*)
Free extra repayments up to $20,000 p.a.
Fast and easy online application process
Our verdict
Want to lock in a sub 3.00% rate for 3 years? Check. No ongoing fees? Double check. Free extra repayments up to $20,000 per year? You got it. If you're in the market for a fixed home loan, check out this 3 year Fixed Rate Special from Mozo Experts Choice Award winner, UBank. It also comes with the flexibility to choose your own repayment schedule (weekly, fortnightly or monthly) and the option to split between fixed and variable rates if you want to
Where do I get it? Head over to UBank to find out more >>
Promoted
Homestar Star Essentials Home Loan
2.39% variable rate (2.42% comparison rate*)
Split account, extra repayments and redraw features
No monthly service fee to pay
Our verdict
Winner of a 2020 Mozo Experts Choice Award for best Low Cost Home Loan, the Star Essentials loan from online lender Homestar continues to shine brightly as one of the cheapest home loans on the market. With a killer low rate, plus unlimited extra repayments, free redraws and a $0 annual service fee, the Star Essentials has all the hallmarks of a loan which puts more money back in your pocket. Plus, refinancers receive up to $1,500 cashback or upfront fees waived on purchases for applications received by 30 September, 2020.
Where do I get it? Head over to Homestar to find out more >>
Looking for an even wider range of options? Pay a visit to the Mozo home loan comparison hub to view the latest rates from over 80 lenders.
This is just a selection of our 2020 home loans winners though. Head over to our dedicated Mozo Experts Choice Awards page for the full winners list as well as a run through of the methodology behind the awards.
*Loan savings based on a $400,000 owner occupier loan over 25 years with principal and interest repayments.
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