RBA rate rises spur borrowers to seek better deals

The Reserve Bank’s latest rate hike has galvanised Australia’s home borrowers into action, with thousands flocking to comparison sites to hunt down lower rate home loan deals.
Interest in cheaper home loans is soaring, putting lenders under pressure to keep their customers. Recent ABS lending indicator data^^ reveals that a whopping $18.5 billion worth of mortgages were refinanced in September.
Although the average Big 4 variable home loan rate has now hit a worrying 7.46%^^^, fierce competition from online and challenger lenders (some owned by the big banks themselves) means that rates are still available well below this.
Mozo Home Loans and Banking expert Peter Marshall 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 shift to challenger lenders.”
Start by comparing some of this month's top rates below….
TOP HOME LOAN OFFERS: DECEMBER 2023
Unloan - Variable Home Loan

- 5.74% p.a. variable rate (5.65% p.a. comparison rate*)
- Zero upfront or ongoing fees
- Refinancers only
The details:
Unloan is a stellar digital home loan built by CommBank, offering owner-occupiers a low 5.74% p.a. variable rate (5.65% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for refinance loans of up to $10M. Minimum 80% LVR. Awarded Best New Home Loan in the 2023 Mozo Experts Choice Awards.^
Macquarie - Offset Home Loan

- Rates from 6.44% variable (6.69% comparison rate*) - minimum 30% deposit
- Zero application fee ($248 annual package fee applies)
- Best Packaged Home Loan Winner 2023^
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 Offset Home Loan offers competitive variable rates along with a range of flexible features such as 100% offset (up to 10 free offset accounts per loan account), free extra repayments and online redraw and a split account option. Available for loans of up to $10 million. Plus, you can apply online in as little as 15 minutes.
Up – Variable Home Loan

- 6.15% p.a. variable rate (6.15% p.a. comparison rate*)
- No application, monthly, annual, redraw, or discharge fees
- Free offset accounts available
With a competitive variable interest rate of 6.15% p.a. (6.15% p.a. comparison rate*), Up offers users a low-fee home loan, all accessed through their 2023 Mozo Experts Choice Award-winning app. This eye-catching home loan only needs a 10% deposit and offers free unlimited repayments with a redraw facility, and up to 50 offset accounts (T&Cs apply). They’ll also cover the first $400 of your property valuation. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank.
loans.com.au - Variable Home Loan 90

- 6.04% variable rate (6.06% comparison rate*)
- Free extra repayments and redraw + optional offset account
- Available to borrowers with 70% LVR
The details:
Looking for a loan that's easy on your wallet? Look no further than the Variable Home Loan 70 from popular online lender loans.com.au. This low rate, low fee mortgage is packed with handy features like free extra repayments, unlimited free redraw, an optional offset account and a split rate option. With all this value on offer and no pesky ongoing fees to boot, it's no surprise that loans.com.au is a multiple Mozo Experts Choice Award winner.^ Minimum 30% deposit.
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^^Source: ABS Lending Indicators Sept 2023, released 2 Nov 2023.
^^^ As at 27 November 2023 in the Mozo database, the average Big4 rate is 7.46% and average rate of 29 challenger lenders is 6.75% based on an owner-occupied variable home loan (borrowing $400,000 at 80% LVR).
Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.
* 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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