Australia's cheapest home loans of 2020


19 Mar 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


UBank UHomeLoan - Discount Offer
  • 2020 Home Lender Bank of the Year

  • 2.59% variable rate (2.59% 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 >>

Promoted Smart Home Loan 80
  • 2.63% variable rate (2.65% comparison rate*)

  • Free extra repayments and redraws

  • $0 ongoing service fee

Our verdict

Online lender 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 to find out more >>


ING Mortgage Simplifier
  • 2.78% variable rate (2.81% comparison rate*)

  • No ongoing fees plus free extra repayments and redraw

  • Australia's Best Bank - Mozo Experts Choice Awards 2019

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 >>


Homestar Star Essentials Home Loan
  • 2.44% variable rate (2.47% 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.

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


HSBC Discounted Home Value Loan
  • New 2.65% variable rate (2.66% comparison rate*)

  • Loans between $50,000 and $7,500,000

  • Uncapped extra repayments

Our verdict

HSBC has gone rogue! Despite being one of the world’s biggest banks, there’s absolutely zero big bank mentality with the HSBC Discounted Home Value Loan. A 2020 Mozo Experts Choice Award winner, the Discounted Home Value Loan has a sharp low rate for borrowers big and small, plus it’s low on fees and it offers free extra repayments, free online redraws and even a split rate option.  

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


Reduce Home Loans Rate Lovers Variable Home Loan
  • 2.52% variable rate (2.52% comparison rate*)

  • Optional offset account (fee applies)

  • No hidden fees

Our verdict

Reduce Home Loans has low rates in its DNA. Aside from boasting one of the lowest variable rates on the market, the Rate Lovers Variable loan has no application or ongoing fees attached. It also has a host of useful features including an optional offset account and free extra repayments. The icing on top? It’s a multiple 2020 Mozo Experts Choice Award winner, including for best Low Cost Home Loan. 

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


Qudos Bank Fixed Rate Home Loan
  • 2.79% 3 year fixed rate (3.01% comparison rate*)

  • No application or annual fees

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

Our verdict

Ready to lock in while rates are low? Not only is the Fixed Rate Home Loan from Qudos Bank a 2020 Mozo Experts Choice Award winner, it’s offering up some seriously competitive fixed rates for borrowers wanting repayment certainty. There’s more good news, because there are no upfront or ongoing fees to budget for, plus 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). 

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


UBank UHomeLoan
  • 2.69% fixed rate for 3 years (3.19% 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. Fee 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 >>

*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.

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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