Aussie borrowers dump big banks after RBA cuts

Kelly Emmerton

13 Aug 2019

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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 New Daily reports that tens of thousands of Australians have taken up the Treasurer’s advice to “shop around and get the best possible deal”, with the hope of saving thousands on their home loan.

Mozo Director Kirsty Lamont said, “Australians are so fed up with the big banks' bad behaviour that their latest rate cut delay tactics have been the last straw for many customers. We’re now seeing a huge shift to smaller lenders, who have been rolling out the red carpet with unbelievably competitive rates.”

LOW RATE HOME LOAN COMPARISONS - rates updated daily

  • Promoted

    loans.com.au

    3.03% p.a. variable

    3.05% p.a.

    $1234

    Product details Close details
    Smart Home Loan

    A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.

    • 3.03% p.a. variable

    • 3.05% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

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  • Promoted

    UBank

    3.09% p.a. variable

    3.09% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    One of Australia's leading digital banks. Easy & fast to apply. Free redraw with flexible repayments. Min. 20% deposit required. Low rate and no bank fees (on variable loans). Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.^

    • 3.09% p.a. variable

    • 3.09% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $200,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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  • Promoted

    Athena

    3.09% p.a. variable

    3.05% p.a.

    $1234

    Product details Close details
    Variable Home Loan

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    • 3.09% p.a. variable

    • 3.05% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

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    ANZ

    3.38% p.a. variable

    3.42% p.a.

    $1234

    Product details Close details
    Simplicity PLUS Special Offer LVR <80%

    Competitive low rate. No upfront or monthly fees. Flexibility to make extra repayments and redraw. Plus, score 300,000 bonus Qantas Points when you apply for a home loan over $300,000 by 31 August 2019, and settle by 31 Jan 2020. Minimum 20% deposit required.

    • 3.38% p.a. variable

    • 3.42% p.a.

    • $0

    • $0.00

    • $160.00

    • yes - free

    • yes

    • no

    • 80.00%

    • $50,000

    • -

    • Variable

    • Principal & Interest

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    • Weekly, Fortnightly, Monthly

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  • Promoted

    Suncorp

    3.29% p.a. variable

    3.30% p.a.

    $1234

    Product details Close details
    Back to Basics Special

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Only 10% deposit required. $1500 cashback offer for refinancers of eligible loans more than $250,000 with LVR less than 80%.

    • 3.29% p.a. variable

    • 3.30% p.a.

    • $0

    • $0.00

    • $350.00

    • Yes - free

    • first redraw per month free

    • no

    • 90.00%

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Receive $1,500 when you refinance an existing loan of $250,000 or more. Apply by 30 September 2019 and settle by 28 December 2019.

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  • Promoted

    HSBC

    3.27% p.a. variable

    3.28% p.a.

    $1234

    Product details Close details
    Discounted Home Value Loan

    Unlimited free extra repayments and no ongoing service fees when you apply by 31 July (T&C’s apply). Get help with the application process with an HSBC relationship manager. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.^

    • 3.27% p.a. variable

    • 3.28% p.a.

    • $150

    • $0.00

    • $300.00

    • yes - free

    • yes - free online

    • no

    • 90.00%

    • $50,000

    • $7,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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  • Promoted

    Homestar

    2.99% p.a. variable

    3.02% p.a.

    $1234

    Product details Close details
    Star Essentials Home Loan

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    • 2.99% p.a. variable

    • 3.02% p.a.

    • $596

    • $0.00

    • $535.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $150,000

    • $850,000

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    • Principal & Interest

    • Owner Occupier

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  • Promoted

    Well Home Loans

    2.97% p.a. variable

    2.99% p.a.

    $1234

    Product details Close details
    Well Balanced

    Well Balanced home loan is a low rate home loan with free online redraw and no valuation fee. Purchase, Refinance or Equity Release purposes allowed. Best New Home Loan in Mozo Experts Choice Awards 2019.^

    • 2.97% p.a. variable

    • 2.99% p.a.

    • $785

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • Optional - $10 per month

    • 80.00%

    • $200,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

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  • Promoted

    Bank of Queensland

    2.99% p.a.
    fixed 3 years

    4.09% p.a.

    $1234

    Product details Close details
    3 Year Discount Fixed Rate

    $1,000 cashback for first home buyers. Apply by 31 August 2019. Minimum loan amount of $300k. 20% deposit needed. Free additional repayments up to $5,000 per year.

    • 2.99% p.a.
      fixed 3 years

    • 4.09% p.a.

    • $450

    • $10.00 monthly

    • $320.00

    • yes - free up to $5,000 p.a

    • no

    • no

    • 80.00%

    • $300,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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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 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.

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