Home loan still with a big bank? Stop paying too much...


23 Nov 2021

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When the head of the nation’s biggest bank, CommBank, publicly admits that profits are being ‘shredded’ due to intense competition from rival lenders with ‘cut price’ mortgages, it’s time for big bank home loan customers to take stock.

The big 4 banks have long held the lion’s share of the mortgage market, but the status quo is under threat. Data from brokers and other industry sources consistently shows that more customers than ever are switching lenders when refinancing their home loan.

Borrowers are flocking to rival lenders for ultra-low rates, less fees, cashbacks and fast approval processes, while the rise of online comparison sites and calculators has made it all too easy for customers to do their own research, comparing interest rates and repayments from the comfort of the couch.

The lowest variable home loan rates on the market now start below 2.00%, and despite their best efforts the big banks just can’t get close to these sorts of rates. "Borrowers can take advantage of the mortgage war to access incredibly low rates that could shave years off your mortgage and save you thousands, depending on how competitive your current rate is," says Mozo money expert Kirsty Lamont.

So if your home loan is still with a big 4 bank, now is the time to compare the ultra-low rate home loans on offer from rival lenders to see how much you could save by switching….

5 of the lowest home loans in Australia: November 2021

loans.com.au Smart Booster Home Loan
  • 1.85% discounted variable rate for 2 years

  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)

  • Best Low Cost Home Loan 2021 - Mozo Experts Choice Awards^

Our verdict

This value-packed home loan from popular online lender, loans.com.au, boasts one of the lowest variable rates on the market and has no upfront or ongoing fees. Borrowers can add on an optional offset account for $10 a month to help save on interest, and pay the mortgage off faster with free additional repayments (and access free online redraw when you need it). Available for loans of up to $1 million, minimum 20% deposit.

Macquarie Basic Home Loan
  • Rates starting from just 2.14% variable and comparison rate* (minimum 40% deposit)

  • No application or account management fees

  • Free extra repayments and redraw

Our verdict

Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. The Macquarie Basic Home Loan now has even lower variable rates, plus zero upfront or ongoing fees and a range of flexible features such as free extra repayments, a free redraw facility and a split account option. To start the simple application process, simply request a call on the Macquarie website. Available for loans of up to $5 million.

UBank UHomeLoan
  • 1.79% fixed rate for 1 year (2.18% comparison rate*)

  • Free extra repayments up to $20,000 during fixed term

  • Fast and easy online application process

Our verdict

Looking to lock in a sub 2.00% rate with no ongoing fees and free extra repayments up to $20,000 during the fixed term? You got it! If you're in the market for the security of a fixed home loan, check out this Mozo Experts Choice Fixed Home Loan Award Winner^ from top online lender UBank. It comes with the flexibility to choose your own repayment schedule (weekly, fortnightly or monthly) and the option to split between fixed and variable rates to better suit you.

Bank of Queensland Economy Variable Home Loan
Bank of Queensland
  • Variable rates from just 1.98% p.a. (2.15% p.a. comparison rate*)

  • Bonus $3,000 cashback for refinancers - limited time only

  • Available to borrowers with 70% LVR

Our verdict

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. This jaw-dropping new sub 2.00% variable home loan is available to borrowers who have an LVR of 70% or less and who meet BOQ's debt to income ratio criteria. Loan features include free extra repayments and free redraws for a $10 monthly service fee, plus refinancers can score a bonus $3,000 cashback for a limited only. Minimum loan size $250,000.

Athena Celebrate Variable Home Loan
  • 1.99% variable and comparison rate*

  • Zero Athena fees plus free extra repayments and redraw

  • Minimum 60% LVR

Our verdict

The Athena Variable Home Loan is one of the best value home loans to hit the market for borrowers with at least 40% deposit or equity. This mortgage features a killer variable rate that stays great from start to finish and zero upfront or ongoing fees. On top of that, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to home buyers and refinancers buying an established property in a capital or major regional city.

*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

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

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