Australia's cheapest home loans of 2020


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

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

  • New 2.34% p.a. variable and 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 >> Smart Home Loan 80
  • 2.48% variable rate (2.50% 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 >>

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

  • Extra repayments (up to $10,000/year)

  • Bonus $3000 cashback for refinancers

Our verdict

The Special Offer Reward Me Fixed Rate Home Loan from Virgin Money is packed with great features, including free extra repayments (up to $10,000/year) and a flexible weekly, fortnightly or monthly repayments schedule. On top of that, refinancers will also score a bonus $3000 cashback when you switch your loan to Virgin Money. Available to borrowers with a 20% deposit or more.

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

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

  • Automatic discounts as loan is paid off

  • 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 and zero evaluation or ongoing fees. What’s more, 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 >>

UBank UHomeLoan
  • 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 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 >>

Suncorp Fixed Home Loan Special Offer
  • 1.89% fixed rate for 2 years (2.94% 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 Mozo Experts Choice Award Winning mortgage from Suncorp boasts one of the lowest interest rates in our database. Apart from the benefits of the certainty you’ll get on your repayments for the first two years, you'll also enjoy the freedom to make free extra repayments up to $500 each month during the fixed term, to help you pay down your loan down sooner. 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 >>

HSBC Fixed Rate Home Loan
  • 1.88% 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 >>

*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

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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