Aussie borrowers dump big banks after RBA cuts

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Borrowers are flocking to comparison sites to hunt out bargain home loan deals in the wake of the Reserve Bank's recent rate cuts, putting the big banks under pressure to keep their mortgage customers.

Interest in cheaper home loans is soaring as smaller lenders cut rates to jaw dropping new lows. The lowest variable home loan rates on the market now start below 2.60% - a far cry from the average big bank variable home loan rate of 3.71%, even though the banks have passed through part of the recent rate cuts to mortgage customers.

Mozo Director Kirsty Lamont said, “Savvy borrowers could save tens of thousands on their home loan by taking the opportunity to shop around and switch. Given the savings on offer, it's hardly surprising we're seeing a huge shift to smaller lenders, who have been rolling out the red carpet with unbelievably competitive rates.”

TOP HOME LOANS MAY 2020 - rates updated daily

  • Promoted

    loans.com.au

    2.63% p.a. variable

    2.65% p.a.

    $1234

    Product details Close details
    Smart Home Loan 80

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ 20% deposit required. Limited time only.

    • 2.63% p.a. variable

    • 2.65% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan 80

  • Promoted

    UBank

    2.59% p.a. variable

    2.59% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    • 2.59% p.a. variable

    • 2.59% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 80.00%

    • $200,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Promoted

    HSBC

    2.09% p.a.
    fixed 2 years

    2.98% p.a.

    $1234

    Product details Close details
    Fixed Rate Home Loan

    Have the security of a fixed rate for 2 years with the option to split with one of the HSBC variable Home Loans. No ongoing monthly service fees or annual fees. Mozo Experts Choice Fixed Home Loan 2020^

    • 2.09% p.a.
      fixed 2 years

    • 2.98% p.a.

    • $0

    • $0.00

    • $300.00

    • yes - free up to $10,000 p.a.

    • no

    • no

    • $0

    • 80.00%

    • $50,000

    • $7,500,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Fixed Rate Home Loan

  • Promoted

    ME

    2.39% p.a.
    fixed 1 year

    3.45% p.a.

    $1234

    Product details Close details
    Flexible Home Loan Member Package

    Option to split your loan into fixed and variable for 1-7 years. Offset available on the variable rate facility. Extra repayments up to $30K during fixed rate period and free redraws available (above $500) when you're ahead of your payments.

    • 2.39% p.a.
      fixed 1 year

    • 3.45% p.a.

    • $200

    • $395.00 yearly

    • $350.00

    • yes - free up to $30,000 during fixed rate period

    • no

    • no

    • $200

    • 80.00%

    • $40,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Flexible Home Loan

  • Promoted

    Athena

    2.59% p.a. variable

    2.55% p.a.

    $1234

    Product details Close details
    Variable Home Loan

    Fast online application with no fees. Free extra repayments and redraw facility. Min 30% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    • 2.59% p.a. variable

    • 2.55% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 70.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Variable Home Loan

  • Promoted

    People's Choice Credit Union

    2.29% p.a.
    fixed 2 years

    3.82% p.a.

    $1234

    Product details Close details
    Fixed Rate Home Loan Package

    A People’s Choice 2 year fixed home loan allows you to enjoy a simple, non-complicated home loan with a competitive rate. There are no restrictions to the number of loans you can combine on a package. Lock in a competitive fixed interest rate with People’s Choice.

    • 2.29% p.a.
      fixed 2 years

    • 3.82% p.a.

    • $0

    • $395.00 yearly

    • $350.00

    • yes - free up to $10,000 p.a

    • no

    • no

    • $0

    • 95.00%

    • $100,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Fixed Rate Home Loan

  • Promoted

    Homestar

    2.39% p.a. variable

    2.39% p.a.

    $1234

    Product details Close details
    Star Essentials Home Loan

    Low Cost Home Loan 2020 winner.^ Packed with essentials like free redraw and extra repayments. No ongoing fees. Borrow $150K+. No construction loans. End of Financial Year Special - No Upfront Fees.

    • 2.39% p.a. variable

    • 2.39% p.a.

    • $0

    • $0.00

    • $535.00

    • yes - free

    • yes - free

    • no

    • $0

    • 80.00%

    • $150,000

    • $850,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Upfront fees waived up to $250 for valuation and up to $265 for legal documentation for applications received by 30 June 2020 and settled by 30 September 2020.

    Read our Mozo Review to learn more about the Star Essentials Home Loan

  • Promoted

    Suncorp

    2.29% p.a.
    fixed 2 years

    3.32% p.a.

    $1234

    Product details Close details
    Fixed Home Loan Special Offer Home Package Plus

    No monthly account keeping fees & No loan establishment fee. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply.

    • 2.29% p.a.
      fixed 2 years

    • 3.32% p.a.

    • $0

    • $375.00 yearly

    • $350.00

    • yes - free up to $500 per month

    • no

    • no

    • $0

    • 90.00%

    • $150,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Refinance from another lender to receive a $2,000 cash bonus for loans of at least $250,000 or $3,000 bonus for loans over $750,000. Available for loans with an LVR <90% and applications made by 10 July 2020 and settled by 10 November 2020.

    Read our Mozo Review to learn more about the Fixed Home Loan Special Offer

  • Promoted

    Bank of Queensland

    2.29% p.a.
    fixed 2 years

    3.52% p.a.

    $1234

    Product details Close details
    Discount Fixed Rate

    Have the certainty of fixed repayments with a competitive rate from BOQ. Flexible repayment options available and make up to $5,000 in additional repayments annually. Discounted fixed rates available for owner occupier lending with max LVR of 80%.

    • 2.29% p.a.
      fixed 2 years

    • 3.52% p.a.

    • $450

    • $10.00 monthly

    • $350.00

    • yes - free up to $5,000 p.a

    • no

    • no

    • $450

    • 80.00%

    • $150,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discount Fixed Rate

  • Promoted

    Mortgage House

    2.19% p.a.
    fixed 3 years

    2.65% p.a.

    $1234

    Product details Close details
    Switch and Save Special - Fixed Rate Home Loan

    Lock in this super-low rate for 3 years so you can budget accordingly and avoid the stress of a sudden rate rise. Avoid unnecessary costs with no monthly fees or ongoing package fees.

    • 2.19% p.a.
      fixed 3 years

    • 2.65% p.a.

    • $1,440

    • $0.00

    • $500.00

    • yes - free

    • yes - free

    • Optional - $10 per month

    • $1,440

    • 80.00%

    • $150,000

    • $5,000,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Switch and Save Special - Fixed Rate Home Loan

*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.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.