Borrower bonanza as lenders slash rates, rain cashbacks

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Temperatures may be dipping outside, but the thermostat on Australia’s home loan market continues to rise as lenders slash rates and hand out generous cashback offers in a winter bonanza for borrowers.

Online and rival bank lenders are leading the rate cut charge, with HSBC, Macquarie, loans.com.au and Athena all dropping variable home loan rates to new lows in recent weeks.

On the cashback front, HSBC is offering a lucrative $3,288 cashback for refinancers for a limited time and Bank of Queensland has extended its popular $3,000 refinance cashback until 29 August.

Mozo money expert Kirsty Lamont said, “With all this value on the table, it’s little wonder these offers are proving popular with borrowers looking to save money on their home loan. For refinancers, now is an ideal time to compare and switch to take advantage of the serious savings on offer.”

If you'd like to start saving on your home loan sooner rather than later, take a look at some of the most competitive new offers on the market below.


TOP NEW HOME LOAN OFFERS AUGUST 2021

HSBC Discounted Home Value Loan
HSBC
  • New 2.19% variable rate (2.20% comparison rate*) for borrowers with 70% LVR

  • Enjoy free extra repayments, online redraw and no ongoing fees

  • $3,288 cashback for refinancers - limited time only

The details:

HBSC is the first major bank in the Mozo comparison database to introduce a variable home loan rate this low for borrowers with 30% deposit or equity. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. And if you're refinancing $250,000 or more to HSBC, you can enjoy a generous $3,288 cashback.

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

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

  • Optional offset account for 0.10%

The details:

This attention grabbing home loan from popular online lender loans.com.au is designed to help you boost your savings, build your equity and own your own home sooner. With flexibility at its core, it features unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. Plus, there are no ongoing monthly or annual fees. Available to borrowers with a 20% deposit for loans of up to $1 million.

Macquarie Basic Home Loan
Macquarie
  • Rates now starting from 2.29% variable and comparison rate* (minimum 60% LVR)

  • No application or account management fees

  • Free extra repayments and redraw

The details:

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.

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.89% fixed rate for 2 years (3.05% comparison rate*)

  • Bonus $3,000 cashback for refinancers - Apply by 29th August

  • Free extra repayments up to $5,000 a year

The details:

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The BOQ Discounted Fixed Home Loan lets you lock in a super low rate for two years while still having the flexibility to pay down your mortgage faster with free extra repayments of up to $5,000 a year. Plus, refinancers who apply before the 29th of August can score a bonus $3,000 cashback. Minimum loan size $250,000, 80% LVR or less.

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

  • Zero Athena fees plus free extra repayments and redraw

  • Minimum 60% LVR

The details:

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.

Suncorp Fixed Home Loan Special Offer
Suncorp
  • 1.89% fixed rate for 2 years (2.85% comparison rate*)

  • No monthly account keeping fees and no loan establishment fee

  • New $3,000 cashback offer for refinancers

Competitively low fixed rate for 2 years? Tick. No upfront or ongoing fees? Double tick. Ability to make free extra repayments during the fixed term? Yep - up to $500 a month without penalty. This 2 year fixed home loan special offer from Suncorp really does tick all the boxes, and as the cherry on the cake there's a new $3,000 cashback offer for refinancers. Available on loans of $750,000 or more, with an 80% LVR.

*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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