Best interest rates fall around 5.60% p.a. right now for savings and home loans

By Evlin DuBose · · 2 min read
Fact Checked
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Two people high five representing savings accounts and home loans best interest rates meeting in the middle

Saving and spending are two key parts of money management. Right now, we’re in a high-interest-rate environment, meaning home loans, savings accounts, and term deposits are all much loftier than they used to be. 

But in the Mozo database, an interesting trend has emerged. (Sorry). As of 9 October 2023, the lowest home loan interest rates and highest savings account interest rates – i.e. the best rates – hover between 5.50% and 5.60% p.a.

Lowest home loan variable interest rates (9 October 2023)

Lender
Loan
Interest Rate
Pacific Mortgage Group
Standard Variable Home Loan
5.59% p.a. (5.59% p.a. comparison rate*)
Teachers Mutual Bank
Your Way Basic Variable Home Loan
5.64% p.a. (5.70% p.a. comparison rate*)
Reduce Home Loan
Basic Home Loan
5.69% p.a. (5.73% p.a. comparison rate*)
Community First Bank
Basic Variable Home Loan
5.69% p.a. (5.74% p.a. comparison rate*)

Lowest home loan fixed interest rates (9 October 2023)

Loan term
Lender
Loan
Interest Rate
1-year
Macquarie Credit Union
Fixed Rate Home Loan
5.48% p.a. (7.89% p.a. comparison rate*)
2-year
South West Slopes Credit Union
Optimum Fixed Rate Home Loan
5.49% p.a. (6.18% p.a. comparison rate*)
3-year
Australian Mutual Bank
Fixed Rate Home Loan
5.48% p.a. (6.10% p.a. comparison rate*)

Highest savings account interest rates (9 October 2023)

Bank
Account
Maximum Interest Rate^^
ME
HomeME Savings Account
5.65% p.a.
BOQ
Future Saver Account – 14 to 35 years
5.50% p.a.
Teachers Mutual Bank
Target Saver
5.50% p.a.
ING
Savings Maximiser
5.50% p.a.
MOVE Bank
Growth Saver
5.50% p.a.

^^Bonus rates must have terms & conditions met to unlock.

But before you start connecting the dots and hailing the Illuminati, let’s keep things in perspective. On average, home loan rates still tend to be much higher than savings rates.

  • Average home loan rate (OO, P&I, LVR<80%): 6.62% p.a.
  • Average introductory savings rate: 4.94% p.a.

And the current syncing of best rates? Coincidence, unfortunately.

Rates may start to diverge soon, as well. Fixed interest rates, such as fixed home loans and term deposits, have started to creep down as the Reserve Bank rate hold continues. Savings rates will probably drop further and harder once the RBA makes cuts, so this coincidence probably won’t last long. But we can still appreciate it while it’s here. (Without hailing the Illuminati). 

Compare low rate home loans in the table below. All averages current as of 9 October 2023. 

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 15 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    6.14 % p.a.
    Fixed 4 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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* 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 $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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 Loan Awards

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